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Self-employed tax cuts scrapped
07 September 2018
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 leading accountancy firm Blick Rothenberg.
Partner Heather Self said: “The Chancellor is counting his pennies and this will save him £360m a year.”
The plan was to scrap Class 2 NIC in April, but this was delayed a year and now looks like it has been shelved.
The worry was low-earning self-employed people would pay more to access the state pension, and it would in fact make the tax system more complex.
Some 300,000 self-employed workers earning less than £6,000 are paying Class 2 NICs voluntary, in order to get the state pension. They would have been moved to Class 3 contributions, which would raise their weekly payments from £2.95 to £14.65.
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