Category Archives: Pension

Parliament will not hike NICs for self-employed, says Chancellor

The Chancellor has today announced that the Government will not go ahead with planned hikes in National Insurance Contributions (NICs) for self-employed workers.

Last week Philip Hammond revealed that Class 4 NICs would increase from nine per cent to 10 per cent in April 2018, and then to 11 per cent in 2019.

He said the measure would bring contributions closer to those paid by employees.

However, he received significant criticism from opposition, which attacked the Government for going back on pledges not to raise taxes during this Parliament.

The Chancellor announced the U-turn on his proposals in a letter penned to parliament today.

“It is very important both to me and to the prime minister that we are compliant not just with the letter, but also the spirit of the commitments that were made.

“In the light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measure set out in the Budget.”

The Prime Minister Theresa May said the proposals were being looked at, pending the publication of the Taylor Report on the future of employment.

“We will bring forward further proposals, but we will not bring forward increases in NICs later in this Parliament,” she said.