Government delays abolition of Class 2 NICs


IPSE has expressed disappointment at a one-year delay in the abolition of Class 2 NICs for the self-employed.

Simon McVicker, IPSE Director of Policy said: “The Government doesn’t seem to know what to do with the self-employed. In March they tried to raise Class 4 NICs before back tracking, they introduced a dividend tax and then changed it as soon as they could, and now they can’t deliver on a significant commitment. The Government really needs to have a complete review of the tax system for the self-employed because they clearly don’t have a handle on it.

“The abolition of Class 2 NICs was a speck of bright light in an otherwise gloomy picture for the self-employed. Taxation is a nightmare for people who work for themselves. It’s too complicated and this measure was intended to make things a bit simpler for millions of people.

“Given the announcement to scrap Class 2 NICs was made in March 2016 we would think the Government would have had time to sort out any issues and meet its own deadline. It is very disappointing the Government could not have made it more of a priority.”

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