UK chancellor raises national insurance payments for self employed in new budget
Friday, March 10, 2017
It was announced there will be a 2% increase in MP tweeted saying she believed these new measures would be unpopular as many would see them as unfair. The leader of the opposition, Jeremy Corbyn, claimed the new measures will not clamp down on people whose self-employment is just for tax benefits, instead causing problems for those legitimately self-employed, arguing that if they are to start paying similar tax rates to the employed then they should get rights such as statutory maternity pay. The think tank claimed, however, this increase is outweighed by other government policies and is, therefore, a good move.contributions for the self-employed, with chancellor Philip Hammond citing worries that people were choosing to become self-employed in order to pay lower taxes and his perception of unfairness in the different rates paid by employees and self-employees. There were accusations this change in policy goes against the manifesto promises the Conservative Party ran on in 2015, which promised four times that there would be no increase in national insurance rates. Conservative
In addition to this, the chancellor announced a £2 billion pledge to social care over the next three years, saying he was aware of the stress the ageing population is having on the Liberal Democrat described the amount as "wholly inadequate", saying much more is needed to pay for an increase in care demands due to the ageing population. The lowest threshold at which shareholders pay dividend taxes is to be lowered from £5,000 to £2,000 claiming that the taxes for dividends provided "an extremely generous tax break for investors with substantial share portfolios". Other budget announcements include an additional £325 million for the NHS, £90 million transport spending for the North of England, £20 million to support campaigning against and a slight increase in funding for the devolved governments.and social care.
- "Budget 2017: £2bn for social care and tax rise for self-employed" — , March 7, 2017
- Heather Stewart, Anushka Asthana and Katie Allen. "Philip Hammond breaks manifesto pledge with budget tax grab" — , March 7, 2017
- Tara Cunningham, Sam Dean and Laura Hughes. "Budget 2017: Chancellor Philip Hammond accused of breaking Tory election promise as he hikes taxes on self-employed" — , March 7, 2017