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Self-employed NICs rise dropped

The chancellor has announced that plans to increase national insurance contributions (NICs) for the self-employed have been dropped.

Introduced in Spring Budget 2017, class 4 NICs were set to increase to 10% from April 2018 before rising again to 11% in April 2019.

MPs criticised that the plans were not in line with the general election manifesto commitment not to increase NICs, income tax and VAT. 

Due to reaction from individuals, media and businesses alike, chancellor Philip Hammond has decided that the change will no longer go ahead.

Plans to abolish class 2 NICs will still proceed from April 2018.

Commenting on the announcement, Steven Cameron, pensions director at Aegon, said:

“While the u-turn is likely to be welcomed by many self-employed people, the policy has put the spotlight on the issue of NI and the rights and benefits of those working in the gig economy.

“Delaying the increase allows more time for the government to come up with a pension solution for the self-employed, which could include rebating the increase in NI into a private funded pension of the self-employed individual’s choice.”

Sean McCann, chartered financial planner at NFU Mutual, said:

“The true cost of this decision may still be borne by the self-employed. It’s clear that the chancellor will look to recoup money from other sources and many tax reliefs will be in his sights.”

Contact us today to discuss these changes.

Why Clients Choose Easy Accountancy

Easy Accountancy offers a low cost, fixed fee accountancy package with all clients receiving their own dedicated, friendly, approachable accountant.

All of our accountants specialise in providing accountancy services to the self-employed, freelancers, sole traders, small to medium sized limited companies and private individuals. All accountants are employees of Easy Accountancy and we never outsource or offshore work.

Our low cost, all-inclusive fixed-fee accountancy service includes unlimited access to your own dedicated accountant throughout the year and covers all your business and personal tax affairs needs.

All our accountancy services include:
  - Unlimited access to your accountant
  - Ongoing advice on how to manage your business
  - Proactive tax advice throughout the year
  - Updates and reminders so you'll never miss a deadline
  - Free bookkeeping software

As a sole trader our fees start at just £60 + VAT a month, for this you receive the above plus:
  - Completion of your Self-Assessment tax return
  - Advice on how much Income Tax to pay
  - Guidance on National Insurance contributions

As a limited company our fixed fee packages are bespoke to your needs, however typically you’ll receive the above, plus:
  - Completion of your year end accounts*
  - Completion and submission of your annual return Companies House
  - The director/s Self Assessment tax return
  - Payroll bureau
  - Dividends and corporation tax computations

We’ve saved our clients up to half on their accountancy bills – if you’d like a quote, click on the quote me button to the right of this page. Alternatively, call us on 01442 275767 or email heather@easyaccountancy.co.uk.

*If you would like us to complete your company year end accounts we simply ask that you have been a client of Easy Accountancy for one year or have made 12 monthly payments.