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Spring Budget 2017: Hammond hands tax rise to self-employed

The Chancellor introduced a rise in national insurance contributions for the self-employed at the Spring budget
Spring Budget 2017: Hammond hands tax rise to self-employed

The chancellor announced an increase to the national insurance contributions payable by self-employed people at today's spring Budget. Currently self-employed people pay a flat rate of £2.80 a week through Class 2 national insurance contributions (NICs) and 9 per cent through Class 4 contributions, on income between £8,060 and £43,000.

IC TIP: Hold

The new system will see Class 4 contributions rise to 10 per cent from April 2018 and to 11 per cent in 2019. As previously announced, from April 2018, Class 2 NICs will be abolished. Employees pay a standard 12 per cent rate on national insurance contributions on the same level, and their employers also pay NI on their behalf.

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