Philip Hammond has announced that the planned national insurance rise for the self employed has been scrapped at least for the current parliament.  He has said he will announce how extra funds will be raised in the autumn statement.

Meanwhile Theresa May has said the government await the Taylor report on the future of employment.  This may bring more fundamental changes potentially brining many people currently classified as self employed into the employment category for tax purposes.

 

The 2017-18 main national insurance rates are set to be:

Self employed

£0 to £8,164 no national insurance

£8,164 to £45,000 9% national insurance

£45,001 and above 2%

Employed

£0 to £8,164 no national insurance

£8,164 to £45,000 25.8% national insurance (of which 13.8% is “employers national insurance”)

£45,001 and above 15.8% (of which 13.8% is “employers national insurance”)