Government scraps plans to increase class 4 NICs

The Chancellor of the Exchequer, Philip Hammond, has announced that the government no longer intends to increase class 4 National Insurance contributions (NICs) as indicated at the Spring Budget 2017 (see: Spring Budget 2017—Income tax and NICs). The government previously announced that there would be an increase in class 4 NICs paid by the self-employed from 9% to 10% in April 2018 and to 11% in April 2019.

The U-turn less than a week after the Spring Budget follows a backlash from Conservative backbenchers who claimed the Chancellor had broken an election manifesto commitment not to increase National Insurance contributions, income tax or VAT.

See: Letter from Chancellor to Chairman of Treasury Select Committee on National Insurance Contributions for the self-employed and House of Commons Statement (15 March 2017).

Filed Under: Budget

Relevant Articles
Area of Interest