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Hammond scraps hike to National Insurance

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Chancellor Philip Hammond has announced the Government will not proceed with the controversial increase to National Insurance contributions in this Parliament.

In the Budget, the Chancellor announced the rate for Class 4 NICs would rise from 9 per cent to 10 per cent in April 2018, and to 11 per cent in 2019.

The BBC reports Hammond has admitted the increase broke the Conservatives’ manifesto pledge.

Last week Prime Minister Theresa May said while the self-employed did have an “unfair” tax advantage, legislation on the increase would not be put before MPs until at least the autumn.

Hammond will set out the rationale for the U-turn in a House of Commons statement later today.

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Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.

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  • Chris Hulme 15th March 2017 at 12:59 pm

    This is great news for all those sole traders out there but can we now pick up on the double taxation of Limited Company profits due to the tax levy on Dividends exceeding £2000? This levy effectively puts a 40% tax on profits from a limited company where a basic rate shareholder takes income by way of dividends.