The Chancellor's decision to scrap a previously-announced tax cut for three million self-employed workers could cost them an extra £150 per year, says Blick Rothenberg.
Heather Self, a partner at Blick Rothenberg said, ‘The Chancellor is counting his pennies and this will save him £360m a year.’
She added, ‘While this saving will help the Chancellor's coffers, he still has a lot of money to find to address the NHS funding shortfall, and may well raise National Insurance Contributions ("NIC") on self-employed earners in his Autumn budget, even though that will be unpopular with many small businesses.’
‘He has to find £20bn from somewhere and labelling a rise in NIC as "paying more to save the NHS" is likely to sugar the pill and help the medicine go down.’
She added, ‘The sting in the tail of abolishing Class 2 National Insurance is that it would cost a lot more for those who are right at the bottom of the income scale.’
For more information, please contact Heather self