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Back in November, Chancellor Jeremy Hunt announced several changes to National Insurance Contributions (NICs) for 2024 in the Autumn Statement 2023.
Not only is the rate of Class 1 contributions paid by employees decreasing by 2% in January, but NICs will also be simplified for self-employed earners later in the year.
NICs are taken from employee salaries or via self-assessment for the self-employed, as a kind of tax that entitles the contributor to state benefits – including support and allowances for employment, maternity, bereavement, and retirement.
Self-employed earners currently pay two NIC classes, so the reforms coming in the new tax year should be welcome news – but do they offset frozen tax thresholds?
Here’s a summary of what’s changing in 2024 for the self-employed and how these NIC reforms could affect you as a self-employed worker.

Previously, HMRC set a deadline of September 2022 for certain trusts to register with the Trust Registration Service (TRS) as an anti-laundering measure against tax fraud – resulting in a significant increase in registrations.

Despite the surge in TRS registrations in 2022 and beyond, the number of trusts filing self-assessment tax returns is declining. The figures dropped by 3% by the end of the 2021–2022 tax year compared to the previous year, with a reduction of 37% between 2003–2004 and 2021–2022.

This decline in the number of trusts submitting self-assessment returns is unsurprising, considering the advantages of using a trust have been eroding as regulations have become stricter – so why might trusts still be beneficial in some cases?

As of October 2023, HMRC has updated its guidance on the tax treatment of charging electric company vehicles at residential properties.

This update clarifies that when an employer reimburses their employee for charging an electric company car at home, there is no ‘benefit in kind’ tax.

There is typically an exemption from tax charges when employers reimburse employees for company vehicle expenses, such as insurance, road tax, and repairs.

Previously, HMRC stated that this exemption didn’t apply to the cost of charging electric company vehicles at home, but it has now reviewed its position.

The administrative process of registering lasting powers of attorney has long been considered confusing and time-consuming, but new legislation will modernise this by introducing an online system and improving the paper process.

After receiving Royal Assent in September, the Powers of Attorney Act 2023 will update the current paper-based system and bring it online, speeding up registration and strengthening safeguards against fraud to make it more secure.

Digitalisation aims to reduce processing times and human errors, ensuring that vulnerable members of society have better protection if they lose the mental capacity to make their own decisions about their healthcare and finances.

Not everyone is aware of the importance of lasting powers of attorney, or the changes to the system in the works – so here is a quick guide to help.

Tax authority HMRC is removing paper VAT registration from November 2023, pushing ahead with the move to ‘digital by default’ with online-only tax services.

As of 13th November, businesses and tax agents must go online to register for VAT. If they are digitally excluded or unable to use the service, then they will have to call the helpline to make a special request for a paper form.

The switch to online-only VAT registration aims to make the application process faster, easier, and more secure, with the majority of businesses already using the digital service – but what if registering by post is the only option?

If you earn money through self-employment or running your own business, it’s very likely that you’re obligated to file annual tax returns with HMRC.
Self-Assessment involves submitting your income and expenditure details for the previous tax year so that HMRC can calculate how much Income Tax you owe, then paying your tax bill by the annual deadline of 31st January.
This means the deadline for filing returns for the 2022–2023 tax year is looming – they must be submitted and outstanding tax paid by midnight on 31st January 2024.
If you have not submitted a Self-Assessment tax return before but need to do so this year, you’ll have to register for a digital tax account with HMRC. This involves waiting to receive an activation code and Unique Taxpayer Reference in the mail before you can use the account, which can take 2 weeks (or 3 weeks if you’re based overseas).
Therefore, if you’re due to complete a Self-Assessment return for the first time in 2022–2023, it’s crucial that you don’t leave it until the last minute to register with HMRC.