Publications that covered this story include Economia and Accountancy, both on 15 March.
- Self-employed and small business owners would have been hit by £2.1 billion in NIC increase
Roy Maugham, head of tax in our London office, said “SMEs will welcome this U-turn.”
“Hitting small business owners with an extra £2.1 billion in tax on the eve of Brexit seemed a very strangely timed measure.”
“In the future we would like to see the Chancellor spending more time listening to the concerns of small businesses.”
“Politicians always claim to value entrepreneurs and “strivers” but then they keep cranking up their tax rates.”
“The self-employed take big risks and miss out on holiday pay, sick pay and many other benefits. It is time the Treasury stopped picking on them.”
Roy then added: “Perhaps on reflection it should have been no surprise that the abolition of Class 2 NICs ought to be replaced by an increased Class 4 liability. What went against the grain was his change to the percentage rate which had specifically been part of their manifesto as something not to change. Instead had he simply extended the range at which the 9% rate was levied I doubt he would have had these problems, but then that would be unlikely to raise the £2 billion his budget required.”
As always we will keep you updated should any further details about the U-turn emerge.