In a potentially welcome announced for the hospitality industry in England and Wales, the government has set out plans to extend licensing hours for the semi-finals and final of the men’s European Football Championships next year, should England, Wales or Scotland reach the final stages of the tournament.

In a public consultation launched 27 November 2023, the government has proposed that pub licensing hours in England and Wales should be extended from 11pm to 1am if any of the UK nations remaining in the tournament reach the latter two rounds in Germany.

The Home Secretary has the power to extend licensing hours for occasions of “exceptional international, national or local significance”.

The plans, which will be subject to public consultation, would provide a welcome boost for the hospitality industry and clarity for pubs and bars. This is part of a series of recent government measures to boost the hospitality industry and make sure pubs and bars have the support they need to thrive, including the continuation of relaxed licensing regulations that allow pubs, restaurants and bars to sell takeaway pints without red tape holding them back.

Pub licensing hours were previously extended for the men’s Euro 2020 final, and pubs also stayed open longer for the King’s Coronation bank holiday weekend earlier this year.

The public consultation will run for 12 weeks with the government to consider the views from the public, licensing authorities and hospitality industry.

Hospitality venues that could benefit from this easing of licensing should start planning their “special EURO 2024 late night events”. The UEFA EURO 2024 fixtures can be viewed online at https://www.uefa.com.

Of course, to benefit from this licensing largesse in England and Wales – if it passes scrutiny – one or more of the UK nations actually have to qualify. Otherwise, supporters will need to drown their late night sorrows at home.

Pensioners across the country have started to receive up to £600 to help with energy bills this winter.

Winter Fuel Payments – boosted again this year by an additional £300 per household Pensioner Cost of Living payment – will land in bank accounts over the next two months, the vast majority automatically.

The money will appear in bank statements with the payment reference starting with the customer’s National Insurance number followed by ‘DWP WFP’ for people in Great Britain, or ‘DFC WFP’ for people in Northern Ireland.

The overwhelming majority of Winter Fuel Payments are paid automatically but some people need to make a claim, such as those who qualify but do not receive benefits or the State Pension and have never previously received a Winter Fuel Payment. The payments deliver additional support to pensioners, the majority of whom are on fixed incomes and also are unable to raise their incomes through fixed employment.

The start of the Winter Fuel Payments season comes hot on the heels of the recent £300 Cost of Living payments made by the DWP to more than seven million eligible households across the UK.

Pensioners receiving Pension Credit also qualify for this extra support. The average Pension Credit award is now worth £3,900 per year and there is still time for those who are eligible to apply and receive the £300 Cost of Living payment.

This is because an eligible claim for Pension Credit can be backdated by three months provided the entitlement conditions are met throughout that time.

If you have taxable income of less than £17,570 in 2023-24 tax year you will have no tax to pay on interest received. This figure is calculated by adding the £5,000 starting rate limit for savings (where 0% of the interest is taxable) to the current £12,570 personal allowance. However, it is important to note that if your total non-savings income exceeds £17,570 then the starting rate limit for savings is unavailable.

There is a tapered relief available if your non-savings income is between £12,570 and £17,570 whereby every £1 of non-savings income above a taxpayer's personal allowance reduces their starting rate for savings by £1.

There is also a Personal Savings Allowance (PSA) that can be beneficial to savers. This allowance ensures that for basic-rate taxpayers the first £1,000 interest on savings income is tax-free. For higher-rate taxpayers the tax-free personal savings allowance is £500. Taxpayers paying the additional rate of tax on taxable income over £125,140 do not benefit from the PSA.

Interest from savings products such as ISA's and premium bond wins do not count towards the limit. And so, taxpayers with tax-free accounts and higher savings can still benefit from the relevant PSA limits.

Banks and building societies no longer deduct tax from bank account interest as a matter of course. Taxpayers who need to pay tax on savings income are required to declare this as part of their annual Self-Assessment tax return.

Taxpayers that have overpaid tax on savings interest can submit a claim to have the tax repaid. Claims can be backdated for up to four years from the end of the current tax year. This means that claims can still be made for overpaid interest dating back as far as the 2019-20 tax year. The deadline for making claims for the 2019-20 tax year is 5 April 2024.

The marriage allowance applies to married couples and those in a civil partnership where a spouse or civil partner does not pay tax or pay tax above the basic rate threshold for Income Tax (i.e., one of the couples must currently earn less than the £12,570 personal allowance for 2023-24).

The allowance works by permitting the lower earning partner to transfer up to £1,260 of their personal tax-free allowance to their spouse or civil partner. The marriage allowance can only be used where the recipient of the transfer (the higher earning partner) does not pay more than the basic 20% rate of Income Tax. This would usually mean that their income is between £12,571 and £50,270 in 2023-24. For those living in Scotland this would usually mean income between £12,571 and £43,662.

Making a claim, could result in a saving of up to £252 for the recipient (20% of £1,260), or £21 a month for the current tax year. In fact, even if a spouse or civil partner has died since 5 April 2018, the surviving person can still claim the allowance (if they qualify) by contacting HMRC’s Income Tax helpline.

If you meet the eligibility requirements and have not yet claimed the allowance, you can backdate your claim to 6 April 2019. This could result in a total tax break of up to £1,256 if you can claim for 2019-20, 2020-21, 2021-22, 2022-23 as well as the current 2023-24 tax year. If you claim now, you can backdate your claim for four years (if eligible) as well as for the current tax year. Even if you are no longer eligible or would have been in all or any of the preceding years, then you can claim your entitlement.

HMRC’s online Marriage Allowance calculator can be used by couples to find out if they are eligible for the relief. An application can be made online at GOV.UK.

Student Loans are part of the government's financial support package for students in higher education in the UK. They are available to help students meet their expenses while they are studying, and it is HMRC’s responsibility to collect repayments where the borrower is working in the UK. The Student Loans Company (SLC) is directly responsible for collecting the loans of borrowers outside the UK tax system.

The main finance package elements available to students include loans for tuition fees and maintenance loans (to help with living costs). The maximum loan amounts are capped with the maximum amount depending on a student’s circumstances. Maintenance grants are also available under certain circumstances. The grants do not have to be repaid but do reduce the amount of available maintenance loan a student can claim.

Students that have finished their studies and entered the workforce must begin to make loan repayments from the April after they have finished their studies or when their income exceeds an annual threshold.

Since 6 April 2023, the thresholds and rates are as follows: Plan 1 – £22,015, Plan 2 – £27,295 and Plan 4 (Scottish student loans) – £27,660. The terms of loan repayment for courses of study started before 01 September 2012 are referred to as 'Plan 1', and those started after 01 September 2012, are referred to as 'Plan 2'. Repayments will be deducted at a rate of 9% of income over the threshold. The threshold for postgraduate loans is £21,000 and repayments are deducted at a rate of 6%

Taxpayers that have made repayments but whose total annual income was less than the respective thresholds can apply for a student loan refund. An application cannot be made until after the relevant tax year has finished. Taxpayers can also apply for a refund from the Student Loans Company if the loan debt has been repaid in full.

The Student Loans Company repayment call waiting times are currently far longer than usual due to exceptionally high volumes of refund requests. Taxpayers should first check if they are due a refund by looking at https://www.gov.uk/repaying-your-student-loan/getting-a-refund

The second review of the State Pension age has been published by the Department for Work and Pensions. The State Pension age is currently 66. The review has stated that a further increase in the State Pension age to 67 for those born on or after April 1960 will take place as planned between 2026 and 2028. Following this announcement, the government has confirmed the State Pension age will rise to 67 by the end of 2028.

The Pensions Act 2014 requires the Secretary of State for Work and Pensions to regularly review the State Pension age. There had also been plans for a further gradual rise in the State Pension age to 68 between 2044 and 2046 for those born on or after April 1977. The government plans to have a further review within two years of the next Parliament to reconsider the rise to age 68.

This will ensure that the government is able to consider the latest information to inform any future decision on the State Pension age. This will include life expectancy and population projections, the economic position and the impact on the labour market.

The government has said they remain committed to the principle of providing 10 years notice of changes to State Pension age, enabling people to plan effectively for retirement. All options for the rise to the State Pension age from 67 to 68 that meet the 10 years notice period will be in scope at the next review.

1 December 2023 – Due date for Corporation Tax payable for the year ended 28 February 2023.

19 December 2023 – PAYE and NIC deductions due for month ended 5 December 2023. (If you pay your tax electronically the due date is 22 December 2023).

19 December 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2023.

19 December 2023 – CIS tax deducted for the month ended 5 December 2023 is payable by today.

30 December 2023 – Deadline for filing 2022-23 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2024-25.

1 January 2024 – Due date for Corporation Tax due for the year ended 31 March 2023.

19 January 2024 – PAYE and NIC deductions due for month ended 5 January 2024. (If you pay your tax electronically the due date is 22 January 2024).

19 January 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2024.

19 January 2024 – CIS tax deducted for the month ended 5 January 2024 is payable by today.

31 January 2024 – Last day to file 2022-23 self-assessment tax returns online.

31 January 2024 – Balance of self-assessment tax owing for 2022-23 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with HMRC. Also due is any first payment on account for 2023-24.

Unsurprisingly, there were no changes to the rates and allowances for Income Tax purposes, VAT, Corporation Tax, Inheritance Tax and Capital Gains Tax. NIC charges for employees and the self-employed were eased and the Chancellor has bowed to lobbying by UK companies and has made the “full expensing” of main rate capital expenditure a permanent feature – it was due to end 31 March 2026.

NIC changes in more detail

For employees

The Chancellor saved changes to NIC until the end of his presentation and was his main tax give-a-way.

He reduced the Class 1 employees contribution rate from 12% to 10% and this will apply to deductions made from earnings from 6 January 2024. According to Treasury estimates this will save the average employee £450 a year in NIC deductions.

For the self-employed

Class 2 NIC contributions are to be abolished from 6 April 2024. This will save self-employed persons £3.45 per week based on rates for 2023-24. The benefits secured by Class 2 contributions (entitlement to the State Pension for example) will continue to be provided.

Class 4 NIC contributions are being reduced by 1%, from 9% to 8% on earnings between £12,570 and £50,270; again, this change is being made from 6 April 2024.

Company capital allowances

In the last budget the Chancellor introduced the concept of “full expensing”. Roughly translated, this means that companies (not the self-employed) can write-off all capital expenditure on qualifying main rate expenditure against their taxable profits in the year of purchase. The aim was to encourage business investment.

Main rate expenditure covers the majority of capital purchases such as commercial vehicles, plant, and office equipment.

This allowance was due to end 31 March 2026.

However, larger concerns, with more lobbying clout, liked this new relief and will be pleased that the Chancellor has made this a permanent feature of the corporate tax regime.

Business R&D tax relief

The existing R&D Expenditure Credit and Small and Medium Enterprise Schemes will be merged from April 2024. The aim is the simplification of the system and boosting innovation in the UK.

Business rates relief

The Chancellor announced a business rates support package over the next 5 years. This included a rollover of 75% Retail, Hospitality and Leisure relief and a freeze to the small business multiplier, which will protect around 90% of ratepayers for a fourth consecutive year.

Alcohol Duties

And finally, it was announced that there will be no increases in the duty rates on beer, cider, wines and spirits until 1 August 2024.

Watch this space

2024 will be a General Election year. Which means our government will be keen to spread some good news prior to announcing a date, projected to be in May or October 2024.

 All eyes in the financial sectors are turning towards the Spring Budget (usually March) 2024, to see what is to be offered. The economic forecasts are still far from bullish and real earnings, discounted for the effects of inflation, are likely to continue to fall next year.

You can check your National Insurance record online at GOV.UK to see:

• what you have paid, up to the start of the current tax year (6 April 2023);

• any National Insurance credits you have received;

• if gaps in contributions or credits mean some years do not count towards your State Pension (they are not ‘qualifying years’); and

• if you can pay voluntary contributions to fill any gaps and how much this will cost.

Your online record does not cover how much State Pension you’re likely to get.

To check your National Insurance record, you’ll need to sign into your personal tax account using your Government Gateway user ID and password.

If you do not have a personal tax account, you will need a Government Gateway user ID and password to set up a personal tax account. If you do not already have a user ID, you can create one when you sign in for the first time.

You will also need your National Insurance number or postcode and two of the following:

• a valid UK passport;

• a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland);

• a payslip from the last three months or a P60 from your employer for the last tax year;

• details of a tax credit claim if you made one;

• details from a Self-Assessment tax return in the last two years, if you made one; or

• information held on your credit record if you have one (such as loans, credit cards or mortgages).

Other ways to apply

You can request a printed National Insurance statement:

• online, if you live in the UK

• online or by post if you live abroad

• by phone

You will need to say which years you want your statement to cover. You cannot request statements for the current or previous tax year.

You can also write to HM Revenue and Customs (HMRC).

National Insurance contributions and Employers Office
HM Revenue and Customs
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The Chancellor of the Exchequer, Jeremy Hunt, has delivered his Autumn Statement to the House of Commons. The government continues to be faced with challenging economic conditions as the cost of living crisis continues to affect many families across the UK.

The Chancellor, however, had some good news with inflation falling to 4.6% in October, down from a peak of over 11% last year. This together with the prospect of an upcoming general election suggested that there may have been more giveaways than in a usual Autumn Statement and this seems to have been borne out.

The OBR also provided good news and forecast inflation to continue to fall gradually. CPI inflation is expected to be 4.8% in Q4 2023 and fall further to 2.8% in Q4 2024. The OBR expects CPI inflation to average 1.8% over 2025 before returning to the 2% target in the medium term.

The following summary of the measures announced by the Chancellor as part of the Autumn Statement measures is split into two sections:

1. Taxation changes
2. Other announcements

Please call if you need to discuss how these changes may affect your business or tax affairs in the coming months.

Taxation changes

National Insurance

The Chancellor announced a number of changes to the National Insurance contributions (NICs) rates.

His first announcement concerned the removal of Class 2 NICs for the self-employed. This means that self-employed people with profits above £12,570 will no longer be required to pay Class 2 NICs from 6 April 2024. Class 2 NICs are currently paid by the self-employed who make profits above £12,570, in order to qualify for benefits such as the state pension. This change effectively abolishes Class 2 NICs for some two million self-employed people. The self-employed benefitting from this change will continue to receive access to contributory benefits including the State Pension. Those currently paying Class 2 NICs voluntarily will still be able to do so at the same rate.

In addition, the Chancellor announced that the main rate of self-employed National Insurance, Class 4 NICs, on all earnings between £12,570 and £50,270 will be cut by 1%, from 9% to 8% from April 2024.

The Chancellor saved his largest giveaway of the Autumn Statement for the end of his speech with the announcement of a reduction in the main rate of Employee National Insurance. This will see Class 1 NICs reduced by 2% from 12% to 10%. Unusually, this measure will come into effect before the start of the next tax year, effectively, from 6 January 2024. Perhaps this can be seen as a not-so-subtle hint of an earlier than expected general election? The Chancellor said this change will save the average worker some £450 a year.

Business Tax – Full expensing

The major announcement in the Autumn Statement affecting business investment related to ‘full expensing’. Full expensing was introduced at Spring Budget 2023 and offers companies the ability to write off the purchase of qualifying plant and machinery. The relief was initially introduced for a 3-year period from 1 April 2023 until 31 March 2026. In the Autumn Statement, the Chancellor announced that the government will now make full expensing permanent. According to the Chancellor, this means that the UK will now have one of the most generous capital allowances regimes in the world.

Full expensing is available on expenditure that includes, but is not limited to, warehousing equipment such as forklift trucks, tools such as ladders and drills, construction equipment such as bulldozers and excavators, machines such as computers and printers, vehicles such as tractors, lorries and vans, office equipment such as chairs and desks, and some fixtures such as kitchen and bathroom fittings and fire alarm systems. This effectively allows qualifying purchases to be written off completely against company taxable profits in the year when purchased.

Business Tax – R&D

The existing R&D Expenditure Credit and Small and Medium Enterprise Scheme will be merged from April 2024, simplifying the system and boosting innovation in the UK.

The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25% to 19%, and the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.

Other announcements

National Living Wage increases

Promoted as the “Biggest ever increase to the National Living Wage (NLW)” the Chancellor confirmed the following changes that will apply from 1 April 2024. For the first time, eligibility for the NLW will be extended to 21 year olds. The increase will see the NLW rate increased to £11.44 per hour.

The National Minimum Wage (NMW) rates are also to be increased from the same date, 1 April 2024.

The new rates will be:

• 18 to 20 year-old rate will be £8.60 per hour
• 16 to 17 year-old rate will be £6.40 per hour
• The apprentice rate will also be £6.40 per hour

It is interesting to reflect that the impact of these increases will fall on employers, not the government.

Back to Work

The government is expanding its programme of employment support for the long-term unemployed for two years from 2024 across England and Wales.

Mandatory work placements will boost skills and employability for those who have not found a job after 18 months of intensive support. Those who choose not to engage with the work search process for six months will have their claims closed and benefits stopped.

Making Tax Digital

It was announced during the Autumn Statement that the government will introduce a package of changes to simplify the design of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA). This will benefit 1.7 million businesses and landlords set to be mandated to use MTD.

It was announced late last year that the introduction of MTD had been delayed until April 2026. From that date, those with annual income over £50,000 will be mandated to join the scheme, followed by those with income over £30,000 from April 2027. The government has said they will keep under review the decision on whether MTD for ITSA will be extended to businesses and landlords with income below £30,000.

Business Rates

The Chancellor announced a business rates support package worth £4.3 billion over the next 5 years. This included a rollover of 75% Retail, Hospitality and Leisure relief for 230,000 properties and a freeze to the small business multiplier, which will protect around 90% of ratepayers for a fourth consecutive year.

Investment Zones

The Investment Zones programme and freeport tax reliefs will be extended from 5 years to 10 years. This will double the envelope of funding and tax reliefs available in each Investment Zone from £80 million to £160 million, to provide greater certainty to investors.

The Chancellor also announced that three advanced manufacturing Investment Zones will be established in Greater Manchester, East Midlands, and West Midlands.

Alcohol duty

As part of the Autumn Statement measures the Chancellor announced, to a big cheer, that the duty rates on beer, cider, wine and spirits will be frozen at the current rates until 1 August 2024.

Tobacco duty

The duty rates on tobacco products were increased by 2% above the rate of inflation (based on RPI) effective from 6pm on 22 November 2023. The Chancellor also announced that the duty for hand-rolling tobacco increased by RPI plus 12% at the same time. The government remains committed to maintaining high tobacco duty rates as a tool to reduce smoking.

Benefits Uprating

Benefit payments will rise by September Consumer Price Index (CPI) inflation – 6.7% rather than what many had predicted which could have seen the Chancellor using the lower 4.6% October rate.

This means the government will raise benefits, including Universal Credit and other working age benefits by 6.7% from April 2024.

The new full State Pension will increase by 8.5%, in line with average earnings growth, from £203.85 per week in 2023-24 to £221.20 per week in 2024-25. The basic State Pension and Pension Credit standard minimum guarantee will also increase by the same percentage.

Local Housing Allowance

To support low income households, the government will increase the Local Housing Allowance rate to cover the lowest 30% of rents from April 2024. This will benefit 1.6 million households with an average gain of £800 next year.