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Budget 2017: National Insurance payments to rise for self-employed

Self-employed workers will face increases in their National Insurance (NI) contributions to reflect the increased state entitlements received by self-employed workers, Chancellor Phillip Hammond has confirmed in today’s Budget.

Class 4 National Insurance contributions will be increased by 1 per cent to 10 per cent from 2018, and to 11 per cent in 2019, raising £1.5bn in revenue per year by the 2020/21 tax year.

Hammond says the change will cost a typical self-employed worker an extra 60p per week. However, he will not reverse former Chancellor George Osborne’s decision to abolish Class 2 contributions for the self-employed.

Hammond said: “An employee earning £32,000 will pay £6,170 of National Insurance contributions. A self-employed person earning an equivalent amount will pay £2,200, significantly less than half that figure. With the introduction of the new State Pension last year, the self employed now enjoy similar benefits to employed people. Lower NI contributions are forecast to cost over £5bn.”



Dividend allowance reduction announced in Budget

Chancellor Philip Hammond has announced he will reduce the dividend allowance from £5,000 to £2,000. In his Budget speech today Hammond said the dividend allowance, introduced by his predecessor George Osborne, represented an “extremely generous tax break.” The Chancellor said the move would come into effect in April 2018. Writing for Mortgage Strategy sister title Money […]

Budget 2017: Growth estimates revised up for 2017 but cut for next 3 years

In today’s Spring Budget Chancellor Philip Hammond announced the forecast for UK GDP in 2017 has increased to 2 per cent, revised up from the 1.4 per cent figure forecast in November’s Autumn Statement. However, this is still lower than the 2.2 per cent forecast by the Office for Budget Responsibility announced in last year’s […]


Which way for mortgage rates in 2017?

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Pension over-taxing

800,000 people are at risk of being over-taxed on their pensions, writes Steve Webb, director of policy at Royal London Hundreds of thousands of people receiving company and personal pensions should check their tax code to make sure that they are not being over-taxed, according to a leading pensions firm. Mutual insurer Royal London has […]


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