Mar 8, 2017
Budget 2017: National Insurance rate rise criticised
Chancellor Philip Hammond announced in the Budget that the rate for Class 4 NICS would rise from 9% to 10% in April 2018, and to 11% in 2019. Previously self-employed people paid lower NICS than employees, as they received fewer state benefits. The increase in the NICS rate will raise £145m a year for the Treasury by 2021-22. "Increasing National Insurance rates for the self-employed could be a further step by the government to penalise those who are taking risks and starting a business, often giving up their regular pay cheques to take a chance at creating something great," said Lucy-Rose Walker, the chief executive of Entrepreneurial Spark. Under Class 2 NICS, self-employed workers pay 2% on qualifying earnings between £5,965 and £8060, typically amounting to £2.80 a week.
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