Following criticism within Parliament, the government has scrapped the increase in Class 4 national insurance contributions originally announced on 8 March 2017 as part of the budget measures.
Class 4 national insurance contributions are payable by the self-employed and the measure had been intended to create more level playing field between the income tax and national insurance paid by the employed and self-employed. The measure was however regarded by many as contrary to an election manifesto promise made in 2015.
The government has already launched a review of modern employment practices including the type of short-term casual work known as the “gig” economy. This may lead to further proposed tax and regulatory measures in future.
