The Chancellor of the Exchequer, Phillip Hammond, has announced his first budget, saying he is "building the foundations of a stronger, fairer, more global Britain". This is how your life will be affected.
- Currently, the self-employed may have to pay both Class 4 and Class 2 NICs:
Class 4 NICs at 9% are paid on profits between £8,060 and £43,000
Class 2 NICs are paid on profits of £5,965 or more
From 2018, Class 2 NICs will be abolished. In the spring budget, Philip Hammond initially announced that Class 4 NICs would rise to 10% in April 2018 and to 11% in April 2019. However, on March 15, the chancellor abandoned plans to raise national insurance for the self-employed by 2 percent.
- Personal tax-free allowance to rise as planned to £11,500 this year and to £12,500 by 2020