Its been said that millions of people who are self-employed are expected to face a tax hike. This includes installers!
Chancellor Philip Hammond, announced in his first budget speech that there are going to be plans to increase the amount of taxes paid by those who are self-employed.
According to bytestart, the small business portal, the key changes include the following;
- Self-employed workers will see Class 4 National Insurance Contributions rise from 9% to 10% in April 2018, and a further increase to 11% in April 2019.
- Sole traders with annual earnings of £43,000 will pay an extra £350 in Class 4 NICs in the 2018/19 tax year, rising to an increase of £700 in NI Contributions in 2019/20.
- The abolition of Class 2 NICs announced in 2016 will come in to effect in April 2018. This represents a tax cut of around £130 a year for those working as self employed, but the net result is still a big increase in tax to pay for sole traders.
Mike Cherry, the National Chairman of The Federation of Small Businesses:
“Mr Hammond announced that he would take forward FSB’s proposals to help the self-employed in the benefits system.
However, the National Insurance rise to 10% next year and 11% in 2019 should be seen for what it is – a £1 billion tax hike on those who set themselves up in business.
This undermines the Government’s own mission for the UK to be the best place to start and grow a business, and it drives up the cost of doing business.
Future growth of the UK’s 4.8 million-strong self-employed population is now at risk. Increasing this tax burden, effectively funded by a reduction in corporation tax over the same period, is the wrong way to go.”