Medical & Professional Autumn Statement 2023

5 22 November 2023 ● AUTUMN STATEMENT From 6 April 2024, class 2 contributions will no longer be required from the self-employed. However, those with profits below £6,725 (unchanged) who wish to retain access to contributory benefits (e.g. state pension) will continue to have the option to make voluntary contributions. From the same date, the class 4 contribution rate on earnings between £12,570 and £50,270 will be reduced by 1% to 8%. The 2% rate on earnings above the upper limit will be unchanged. The voluntary class 3 rate will be unchanged at £17.45 a week for 2024/25. Pay as you earn (PAYE) – self assessment Individuals with income taxed only through PAYE will no longer be required to file a self assessment return from 2024/25. Off-payroll working (IR35) HMRC will be able to reduce the PAYE liability of a deemed employer to account for taxes paid by a worker and their intermediary on payments received where an error has been made in applying the off-payroll working rules. Company cars and vans The benefit-in-kind appropriate percentages for all cars will remain unchanged for 2024/25. Car and van fuel benefit charges and the van benefit charge will also remain at 2023/24 levels. Capital gains tax The annual exempt amount for individuals and personal representatives will be halved to £3,000 in 2024/25, as previously announced. The annual exempt amount for most trusts will be cut to £1,500 (minimum £300).