national insurance Articles

OECD calls for self-employed tax hike
marketing | 24 October 2017
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Calls from the Organisation for Economic Cooperation and Development (OECD) to revive plans for a self-employment tax hike have been met with scorn and confusion from self-employment pressure groups.

The last budget, delivered before the general election in June, included plans to increase National Insurance Contributions (NICs) for self-employed workers.

But in an embarrassing U-turn the Chancellor was forced to drop the tax hike when MPs pointed out that it contravened a 2015 election promise not to increase VAT, NICs or income tax.

A study completed as part of a broader investigation into the ‘gig economy’ could end up costing you up to £1,000 in National Insurance Contributions (NICs) if you work more than one job.

A survey, which was commissioned by the government, has concluded by recommending wholesale reform of the NIC system for employed and self-employed people with multiple jobs.

If applied, the recommendations would see NI applied on a ‘per person basis’, which would effectively mean a tax increase of up to £19 for some multiple job workers (nearly £1,000 per year).

Completed by the Resolution Foundation, the study represents part of a broader examination into tax and employment regulations in the modern era.

It found that many of the assumptions underpinning the so-called ‘gig economy’ were false. 

contractor tax

From November 2014 HMRC are issuing 24 million personal tax summaries showing the tax you have paid and how it was spent. You should receive a tax summary automatically if you have paid any income tax in the prior tax year.

Self-employed welcome Chancellor’s ‘screeching’ U-turn

Chancellor Philip Hammond has been forced to make a ‘screeching’ U-turn on National Insurance contributions (NICs) for the self-employed.

In his budget statement last week, the Chancellor said that he wanted to increase Class 4 NICs, which are only paid by self-employed workers, by two pence in the pound in 2019. 

Following heavy criticism from Tory backbenchers, the media and the self-employed community, the Chancellor has dropped this policy.

The SNP leader in Westminster Angus Robertson called it a “screeching” U-turn while Labour said the move was “humiliating”. 

Employment Allowance HMRC Take up rates

HMRC have issued the take-up rates for the Employment Allowance which would have saved qualifying businesses up to £2,000 in employers’ national insurance contributions during the tax year 2014/2015.