March 8th, 2017 / Insight posted in MKS Comments

Spring Budget 2017: Increase in Class 4 NICs from 9% to 10%

“The increase in Class 4 NI by 1 per cent will cost a self-employed individual up to £368 from April 2018 and the same again from April 2019; although this will be mitigated somewhat by the abolition of Class 2 NICs, saving them £150 a year,” comments Tim Stovold, head of tax at Kingston Smith. “The overall increase is lower than expected and is being phased in over a longer period. The Chancellor argues that the new State Pension does not justify a differential in the rates of NI. However, this ignores different employment rights – and above all job security and financial risk.”