Dreams of a tax cut for the self-employed have disappeared with the news that Chancellor Philip Hammond has u-turned on an earlier policy. HM Treasury has scrapped their plans to reduce National Insurance contributions for the self-employed. First announced by previous Chancellor George Osborne in his 2015 Summer Budget, the cut to Class 2 National Insurance contributions would have saved around three million self-employed workers an estimated £150 a year each. Hammond had already delayed the introduction of the tax cut for a year in his Budget last November. It was originally due to be introduced this April.
Self-employed tax cut u-turn
This 573 word blog looks at why the HM Treasury have changed their decision on reducing the National Insurance contributions for the self-employed. Written on 7th September 2018.