U-turn on plan to increase National Insurance for self-employed

The plans to increase National Insurance set out in last week’s Spring Budget have been scrapped.

After facing a backlash by Conservative backbenchers, Chancellor Phillip Hammond has announced that the Government will no longer be proceeding with plans to increase National Insurance levels for self-employed workers. These plans had been heavily criticised for breaking a 2015 manifesto pledge.

In a letter to Conservative MPs, he said:

“In light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measures set out in the Budget.

There will be no increases in NICs rates in this Parliament. We will continue with the abolition of Class 2 NICs from April 2018. The cost of the changes I am announcing today will be funded by measures to be announced in the Autumn Budget.”

The plans set out in the Chancellor’s Budget would have increased National Insurance for self-employed workers from 9% to 10% in April 2018, and to 11% in 2019. The reasoning behind this was to bring this closer in line with the 12% currently paid by employees.

 

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

You may also be interested in:

10.03.2017
What the Spring Budget 2017 means for landlords

15th March 2017