View more on these topics

Govt should have raised NICs for self-employed, review to find

An independent review of the Government’s approach to modern employment trends is likely to conclude that Chancellor Philip Hammond should have stuck to his guns and increased national insurance contributions for the self-employed.

Hammond withdrew the tax increase for the self-employed, one of his main Budget pledges, just days after the announcement.

However, Royal Society for the Encouragement of Arts, Manufactures and Commerce chief executive Matthew Taylor, who was chosen to lead the review, has said that taxation should be a level playing field across the employed and self-employed.

Ahead of his final report in June, Taylor told MPs on the work and pensions select committee yesterday: “It is likely that two of the strategic shifts we will advocate [in the final report] is that over time we will need to move towards a more consistent way of taxing labour,” the Guardian reports.

“We need to get to a position where it doesn’t really matter how you are employed, the system treats you in a very similar kind of way.”

While Taylor said he expected self-employment to continue on an upward trend, NICs should have been raised, in the short-term at least, in order to reflect the growing rights the self-employed have gained.

“The second part is that we need to improve the support and entitlement that we provide to self-employed people…These are changes we need to accomplish over the next few years because I think that self-employment is likely to grow.”

“That’s why I was supportive of the measure proposed by the chancellor in the Budget because I felt they were a necessary short-term move to reflect that entitlements to self-employed people have grown.”



Self-employed NICs to rise to 11%

Self-employed workers will face increases in their National Insurance contributions to reflect the increased state entitlements received by self-employed workers, Chancellor Philip Hammond has confirmed in today’s Budget. Class 4 National Insurance contributions will be increased by 1 per cent to 10 per cent from 2018, and to 11 per cent in 2019, raising £1.5bn […]


Nic Cicutti: The real problem with the Budget is not NI

One of the things that interests me about our view of politicians is the suspicion we feel when they propose plans aimed at tackling long-standing problems they have identified as being in need of a solution but which we would rather they left well alone. The best example of that is Chancellor Philip Hammond – […]

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.

Graphic Content – August

Given the release of employment data from the US on 5 August, we wanted to focus on employment data in this month’s Graphic Content. The Graphic Content below shows us that young and middle-aged workers were hit the hardest by the Great Recession and have never caught up. Since the job market started to recover […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm