It’s Tuesday! Let’s talk Tax!
Read this week’s short tax snippet for Doctors & Dentists, to help you save money and get more organised with your tax affairs. It’s just to give you a flavour – take 5 minutes to have a read.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.
Spring Budget 2017
On 8 March, the Chancellor announced that National Insurance (NI) would be rising in 2018 by 1 percent for anyone trading as self-employed, followed by a further 1 percent rise in 2019.
This decision would have raised approximately £2 billion for the Treasury and would have cost many tax-payers a further £240 per year, on average when earning over £8,060 in self-employed profits.
The government had made this decision to level the amount of tax paid between the employed and the self-employed.
A complete U-turn in under 1 week
However, just a week after making the Budget announcement, the Chancellor has revoked the proposed rise in NI, following rallying from the self-employed, business lobby groups and even other Conservative party members.
The rise in NI would apparently have broken a “tax lock” that was part of the Conservative government manifesto commitment to keep VAT, income tax and NI the same.
Initially, Phillip Hammond announced that he would delay the rise until Autumn 2018, but shortly after he followed up confirming that there would be no NI rises in this Parliament.
In addition, the Class 2 NI would still be abolished in 2018.
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