What the Autumn Budget means for Small Business Owners

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National Minimum Living Wage Increase
The National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April 2023. The rate for 21-22 year olds will go up by 10.9% to £10.18 an hour;, while for 18-20 year olds it will rise by 9.7% to £7.49 an hour. Apprentices and those aged 17-18 will be paid at least £5.28 an hour, an increase of 9.7%.
National Insurance Thresholds and Employment Allowance 
The Autumn Statement confirms that many of the NIC thresholds will remain fixed from 2023/24 until April 2028. This includes the £5,000 employment allowance.
VAT Registration Threshold Frozen

It was announced that the VAT Registration Threshold will remain frozen until 2026, due to the VAT threshold NOT increasing in line with inflation, this will mean that more small businesses may have to register for VAT as a result of increasing their fees to earn more.

Changes to the taxation of electric vehicles

From 01 April 2025, electric vehicles will no longer be exempt from vehicle excise duty (VED). Zero-emission vehicles registered on or after 01 April 2025 will pay the lowest rate of VED, currently £10, in the first year. This will then increase to the standard rate, currently £165, from the second year of registration onwards. Vehicles that were registered before 01 April 2025 will pay the standard rate from 1 April 2025 (£165).



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