We recently sent you our Budget Summary detailing the announcements made on Budget Day 8 March 2017.
One of the significant announcements Chancellor Philip Hammond made on Budget Day was the proposed increases to the main rate of Class 4 National Insurance Contributions (NICs) paid by self-employed individuals. The rate was to increase from 9% to 10% from April 2018 with a further increase planned from 10% to 11% from April 2019.
The Chancellor has announced that the government will not now proceed with the proposed increase in Class 4 NICs rates. Self-employed individuals currently pay Class 2 and Class 4 NICs. Class 2 NICs are to be abolished from April 2018.
The government propose to make further announcements following the
forthcoming report by Matthew Taylor on the implication of different ways of
working for employment rights.
Announcements are expected to be made in the Autumn Budget on how the cost
of the changes will be funded.