The Chancellor, Philip Hammond, has delivered a tax rise for the self-employed in his 2017 Spring Budget.
Self-employed people face a rise in national insurance contributions, from 9% to 10% in April 2018, and to 11% in April 2019—in breach of a 2015 Conservative Party manifesto promise not to raise the tax.
Hammond said the tax advantage for self-employed people “can no longer be justified”.
The Chancellor offered some help to small businesses, in the shape of £435m to ease the impact of the impending rise in business rates. However, Carolyn Fairbairn, director-general of the Confederation of Small Businesses, said: “With inflation rising and the cumulative burden weighing on businesses’ shoulders, limited relief for firms hit hard by business rates falls short.”
The Budget reserves an extra £2bn for adult social care over the next three years. However, the government is to consider options for long-term funding of care. It also offers a tax avoidance clampdown, including action to prevent businesses converting capital losses into trading losses and measures to stop abuse of foreign pension schemes.
