A tax break for companies investing in machinery has been made permanent, announced chancellor Jeremy Hunt yesterday.
Full expensing – billed as the “biggest permanent tax cut in modern British history” – was first introduced in 2023 to replace the ‘super deduction’ tax cut, and allows businesses to claim 100% capital allowances on qualifying plant and machinery investments. Companies are able to write off the cost of investment in one go, and for every pound a company invests, its tax is cut by up to 25p.
Other announcements in yesterday’s Autumn Statement included cutting Class 1 employee National Insurance contributions (NICs) from 12% to 10% from 6 January 2024, while for the self-employed, the Class 4 NICs will be reduced from 9% to 8%, and Class 2 NICs are being abolished.
In addition, it has been confirmed that the National Living Wage is being increased from £10.42 to £11.44 in April 2024, and the age threshold is being reduced from 23 to 21 years old. For those aged 18-20 it will go up to £8.60, while apprentices and those under-18 will receive £6.40.
The IPIA (Independent Print Industries Association) says it welcomes the business and manufacturing support announced by Jeremy Hunt, in particular making the full expensing scheme permanent.
“The IPIA has focused on advocacy for the extension and expansion of this specific policy since April 2023 – across multiple tiers of government – and we are very hopeful this will strengthen market confidence and stimulate long-term sector growth,” commented chairman Charles Rogers.
Also highlighted by the IPIA as being potentially beneficial for the UK print industry is the £50m in funding to increase support for business taking on apprentices, plus the £4.5bn investment in advanced manufacturing and green energy in the form of subsidies and grants.
In addition, the association hopes the one-year extension to the existing 75% business rates relief for retail, hospitality and leisure “will support a key breadbasket print-buying sector and hopefully work to uncork marketing investment”.
