U-Turn on Class 4 National Insurance Contributions

U-Turn on Class 4 National Insurance Contributions

Animo Budget Update 2017

In a sharp U-Turn to the hike in Class 4 National Insurance Contributions (“NICs”) announced only a week ago, The Chancellor announced today that there will be no increases to NIC in this Parliament.

Following last week’s controversial announcement in the Budget, Mr Hammond faced a significant backlash from not only sections of the public but also members of his own party in what was seen as a clear breach of the 2015 Manifesto pledge.

The news comes as a welcome announcement for the self-employed who will continue benefitting from the existing rates and also with the eventual abolishment of Class 2 NICs which Mr Hammond confirmed would be implemented as intended.

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