The Chancellor Philip Hammond presented the last Spring Budget on Wednesday 8 March 2017. In his speech the Chancellor was keen to point out that he wanted the tax system to be fair, particularly in relation to the distinction between employed and self-employed individuals.
Our summary focuses on the issues likely to affect you, your family and your business. To help you decipher what was announced we have included our own comments.
One of the significant announcements Chancellor Philip Hammond made on Budget Day was the proposed increases to the main rate of Class 4 National Insurance Contributions (NICs) paid by self-employed individuals. The rate for the main band of profits was to increase from 9% to 10% from April 2018 with a further increase planned from 10% to 11% from April 2019. However, the government have announced that they will not now proceed with the proposed increase in Class 4 NICs rates. Self-employed individuals currently pay Class 2 and Class 4 NICs. Class 2 NICs are to be abolished from April 2018.
For a run down of the latest tax rates for 2017/18, download our handy tax card.
If you have any questions please do not hesitate to contact us for advice.