Chancellor Philip Hammond announced in what is billed as the last Spring Budget that Class 4 National Insurance contributions (NICs) for the self-employed will rise from 9% to 10% in 2018 and 11% in 2019.
The Chancellor said the main rate of Class 4 NICs will increase from 9% to 10% in April 2018, and then to 11% in April 2019, in an effort to reduce the gap in rates paid by the self-employed and by employees. The hike comes despite the fact the Conservatives suggested they would not increase NIC rates in their 2015 General Election manifesto. Currently, the self-employed pay a smaller weekly contribution through ‘class 2' NI contributions and then 9% on income between £8,060 and £43,000, which works out lower than the standard 12% rate for employees. In his Budget speech earlier to...
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