Changes to the National Insurance Contributions scheme, which would have imposed extra costs from April 2018 on self-employed people earning profits of more than £16,250 pa, have dominated the headlines on three occasions for three different reasons this month.
10/3/2017
1) When Chancellor Phillip Hammond announced the changes in his first ever Spring Budget.
2) When a significant number of Conservative MPs claimed the increase breached a commitment in their party’s 2015 manifesto.
3) When the Chancellor announced in the House that there would be no NICs increases this Parliament after all.
‘Letter from Chancellor to Chairman of Treasury Select Committee 15.03.17‘ explains the reasons for the U-turn and the Chancellor’s proposed alternative course of action.
‘Spring Budget 2017: tax-related documents‘ contains information on the full list of Spring Budget measures that have remained unchanged. They include
- a reminder that tax free childcare will soon provide up to £2,000 pa for working parents
- a warning that the government is considering fines for firms which mislead or mistreat consumers
- £270m to launch the Industrial Strategy Challenge Fund
- an extra year for landlords and firms under the Vat threshold to prepare for tax digitalisation
- £435m to support firms affected by the business rates relief revaluation
- tax-free dividend allowance to be reduced from £5,000 to £2,000 from April 2018