The Chancellor has announced that plans to increase National Insurance Contributions (NICs) for the self-employed will be scrapped.
The plans, announced in last week’s Spring Budget, would have seen NICs hiked from nine per cent to 10 per cent in April 2018, and then to 11 per cent in 2019.
The Chancellor argued that the change would bring NICs in line with what employees currently pay (12 per cent).
But the Government faced an onslaught of criticism, having pledged that the current Parliament would not see any changes in National Insurance, Income Tax, or VAT.
In a letter to MPs, Chancellor Philip Hammond wrote: “It is very important both to me and to the prime minister that we are compliant not just with the letter, but also the spirit of the commitments that were made.
“In the 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 measure set out in the Budget.”
British Prime Minister Theresa May said the plans would be revisited, pending the publication of the Taylor Report on the future of employment.
“We will bring forward further proposals, but we will not bring forward increases in NICs later in this Parliament,” she said.
Latest posts by ELS Law (see all)
- Study suggests PCL is ‘most resilient’ segment of UK property market – November 15, 2017
- Monarch administrator seeking appeal “as a matter of urgency” – November 10, 2017
- Estate agent notes ‘recovery’ in super prime market – November 8, 2017