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.

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
BX9 1AN