Class 4 NICs
The Chancellor announced two increases in Class 4 NI contributions for the self-employed in his budget and in the following week withdrew the increases for the term of the current parliament.
His original notion was to start the process of equalising the NI contributions made by the employed and self-employed now that State Benefits, particularly the new flat-rate State Pension, are available to both groups.
The first rate increase, from April 2018, was set to coincide with the abolition of the self-employed Class 2 contributions on this date. However, it would appear that manifesto promises carry more weight than fiscal necessity and the increases have been abandoned.
Class 2 contributions are still being withdrawn, which means that the scope of Class 4 contributions will need to be adjusted to counter any loss in benefits presently provided by Class 2.
Legislation in this area has been thrown wide open to change by the apparent U-turn since the budget announcements. As and when the intentions of government become more certain we will update readers accordingly.
Latest News
- Green finance projects receive government backing - June 1, 2023
- Paying work-related expenses? Do not forget to claim - May 30, 2023
- The power of management accounting and cloud software for SMEs - May 25, 2023
- Rising cost of fuel and groceries fall under spotlight - May 23, 2023
- Government cash for industries to boost economy and cut emissions - May 18, 2023
- Millions of pounds saved as tide is turned on benefit fraudsters - May 16, 2023
- Tax change supports low-earning savers - May 11, 2023
- Restaurant and bar staff to benefit from new tipping law - May 9, 2023