Phillip Hammond’s first budget as Chancellor was delivered on 8th March and delivers yet another hit to the self employed. Class 4 National Insurance will increase from 9% to 10% from April 2018 and to 11% the following year.
Class 4 National Insurance is already a shock for many self employed people but this change will make the impact even worse. As more and more people are becoming self employed it’s easy to see why the government has decided to increase this rate. It is thought that the average cost per week per person will be only around 60p and it will raise £145m per year by 2022.
However the flat rate Class 2 NI contributions will be scrapped from 2018.
See our previous post explaining National Insurance, including Class 4 here
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