Stephen Relf and Meg Wilson look at the upcoming changes to NICs
Following Philip Hammond’s decision to abandon planned increases in Class 4 NICs, you could be forgiven for thinking that there will be no changes to NICs for the self-employed in the near future. And yet government announcements made prior to the calling of the general election suggest that significant change is on the horizon: from April 2018, Class 2 NICs will be abolished and Class 4 NICs will be restructured to give the self-employed access to contributory benefits. For most self-employed people, this will mean more money in their pocket from the Class 2 NICs saved, and little else. However, the changes will not be welcomed by all and those paying Class 2 NICs on a voluntary basis will be hardest hit.