Self-employed welcome Government U-turn on tax increases

IPSE has today (15 March) welcomed the Government’s decision to reverse their decision to increase National Insurance Contributions for the self-employed as set out in last week’s Budget.

Chancellor Philip Hammond announced a 2p increase on Class 4 NICs but in an open letter to the Treasury committee he said “It is very important both to me and to the Prime Minister that we are compliant not just with the letter, but also the spirit of the commitments that were made [not to raise income tax, national insurance or VAT].

“In the light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measure set out in the budget.” 

Chris Bryce, IPSE CEO, said: “IPSE is delighted that the Chancellor, following IPSE’s representations, decided to rethink its plans to raise NICs on the self-employed. Two-and-a-half million hard working people will sleep easier tonight.

“The decision to remain true to the Conservative manifesto pledge is most welcome and we are delighted they have considered the detrimental effect imposing a tax rise on the self-employed population would have. The self-employed add a significant deal to the UK economy and the reversal of these changes allows them to continue doing exactly that.

“After the Budget announcement, people working for themselves up and down the country made their voices heard and Government did the right thing in listening.

“Tax for the self-employed is an incredibly complex issue and any policy needs to be carefully considered. IPSE looks forward to working with the Government to discuss how to make taxation of this group fairer while protecting treasury receipts.”

View interviews about the Budget with IPSE staff and members on our Youtube Channel.

Finance, Tax, Policy, HMRC, IPSE News

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