Hammond Hangs Head
Only days after upsetting the small business community and a substantial section of his own party, Chancellor Philip Hammond has scrapped plans to raise NICs for the self-employed.
The 2% increase in Class 4 National Insurance, which we highlighted in our Spring Budget 2017 overview, was due to be introduced in 2 stages starting in April 2018. However, commentators quickly picked up that this move contradicted the Conservative manifesto tht declared that there woul be no NIC rises.
In the short term this is obviously good news for the self-employed. Unfortunately since there is now a reported £2bn hole in the government’s finances it won’t take long for some or all of us to be targeted to make up the shortfall.
In the meantime if all of this is leaving confused over how to plan your business finances, why not talk to Lewis Smith & Co.