Budget Update – NIC rise scrapped

March 15th, 2017  |  Published in Uncategorized

The Chancellor obviously reads my posts on here, (although he says he actually found out from the BBC’s Laura Kuenssberg) as he has now reconsidered and scrapped the planned rises to Self Employed Class 4 NIC, realising that they were in direct contravention of the manifesto pledge not to increase tax or NIC. Did noone think to tell him beforehand?

At the end of the current tax year’s self assessment you will still pay the £145.60 class 2 NIC that you paid this year, but it will be the last time, as they are scrapping it for future tax years . This is the old ‘stamp’ NIC, that you used to pay monthly. Class 4 NIC will remain as it is now, 9% on profits between £8,060 and £43,000 plus 2% on profits over £43,000.

 

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