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“no rational reason for self employed to pay less NIC than employed. State pension changes have removed the difference”.
That is just wrong. What about SMP for a start?
Agreed. Also this buys into the fiction that NIC contributions are being ring-fenced to pay for pensions and is not just another level / band of taxation. Will the self-employed now enjoy enhanced jobseekers / sick pay / maternity pay in common with employees and who is going to donate some of their external profits to the self-employed workers pension fund in lieu of an employer ? How many self employed people are working 9 to 5 and going on strike as soon as any aspect of their working conditons looks like changing ? With MTD looming they will also fall exhausted into a chair at the end of the day and then be expected to do the business book keeping Yaaay ! There is no parity.
A very silly comment by Mr Hammond.I think he should try 1 month of self employment : No holiday pay , no sick pay , no pension contributions
Money guaranteed ( more or less ) every month .Not so with a self employed worker . NO work no pay with self employment but if your workplace is quiet you will still (no doubt) get paid
Silly comparison by a silly person who should know bwtter
No boss telling you what to do or how to do it. Keep your own hours. Pay what you like into pension pot, with only yourself to blame if you pay nothing. Not at the whim of employer going belly up. If you get no work leading to no pay, then you will not have to pay class 4 NIC on the profits that you have not earned. Meanwhile if you get a guaranteed salary as an employee in a quiet period you will still be paying class 1 NI on that.A very silly comment by Mr Hammond.I think he should try 1 month of self employment : No holiday pay , no sick pay , no pension contributions
Money guaranteed ( more or less ) every month .Not so with a self employed worker . NO work no pay with self employment but if your workplace is quiet you will still (no doubt) get paid
Silly comparison by a silly person who should know bwtter
A bit of balance, perhaps?
With kind regards
Clint Westwood
In the same way that the Government has been sneaky about promising no Ni increases and then cynically suggesting this was meant just for the employed is the announcement that it will rise 1% from April 2018 not similarly disguised. Are we sure the uncapped 2% that was introduced a few years ago is not also increasing by 1% to 3% and then 4% thereafter ?
What I find sad is that we lack a proper opposition. This is an attack on natural Tory voters and Hammond knows that he can get away with it. To hear McDonnell (who is somewhat to the left of Stalin's granny) defending the interests of the self employed is to suspend disbelief. As for dividend tax, wtf?
What worries me is effect of this measure on the apparent numbers of self employed persons disclosed in the red book - over the next few years it indicates that the amount of revenue that will be lost by abolishing class 2 NIC rises and falls like this - in £millions - 18/19 £405, 19/20 £430, 20/21 £380, 21/122 £350. The amount raise by increasing Class 4 shows a similar pattern. This seems to indicate (dividing by £148 the annual contribution at 17/18 rates) a peak of 2,905,405 self employed persons otherwise paying class 2 in 20/21 falling to 2,364,865 only two years later! Is this a Brexit effect??? What do the Treasury know that we don't???