Chancellor Philip Hammond has announced today (15th March 2017) that the planned rises to Class 4 National Insurance Contributions (NIC) for the self-employed, which were announced in the Spring 2017 Budget, will not now go ahead as planned in 2018 and 2019.

He further confirmed that the planned abolition of Class 2 NIC from April 2018 will go ahead as planned.

He announced that the cost of these changes would be funded by measures to be announced in the Autumn 2017 Budget.

It is not known if this will involve increasing the scope of the main rate of Class 4 NIC, or an unrelated change to another taxation or spending measure.

A copy of the letter announcing this change can be seen here

Sage Accountant Partner Logoiris kashflowFreeagent