Budget 2017 (2): Self-employed hit hardest by Budget tax rises

by Susie Hughes at 14:08 08/03/17 (Political News)

The self-employed were the biggest losers in Chancellor Philip Hammond’s Budget, according to freelancer group IPSE.

The Chancellor announced a 2p increase for self-employed National Insurance Contributions (NIC’s) and reduced the allowance for Dividend Tax from £5,000 to £2,000. IPSE is concerned that these punitive measures will have a severely detrimental effect on the self-employed workforce. Advertisement Chris Bryce, IPSE Chief Executive, said: “If you are one of the hardworking self-employed people who face a significant increase on your tax bill, you might feel that the Chancellor has it in for you. “When you look at the additional support offered for business rates it appears as if the Chancellor is supporting SMEs by hitting entrepreneurs and the smallest of businesses. Budget links on Shout99 Budget (6): Small business owners to feel the pinch Budget 2017 (5): Accountants reaction to small business tax clampdown Budget 2017 (4): Budget twists the knife into freelancers and contractors Budget 2017 (3): Continued pressure on small firms and self-employed Budget 2017 (2): Self-employed hit hardest by Budget tax rises Budget 2017 (1): 'Unfairness' of tax system which favours self-employed “Adding in the reduction in Dividend Tax allowance, whether you work as a sole trader or through a limited company you will be facing higher bills. The Chancellor shouldn’t forget that growth in self-employment has driven our labour market in recent years and punitive rises in tax will make many people have second thoughts about striking out on their own. “It’s entirely right for the Chancellor to look at taxation of the self-employed, but changes should only come after a thorough consultation with the business community, which has not taken place.” Further information Shout99 will continue coverage of the stories emerging from the Budget; in the announcements after the Budget; and expert comment and analysis in the Political News section of Shout99. Alerts also available through our Twitter feed. Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2017

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