Budget 2017 - PwC comments on National Insurance increase

Published at 14:09 PM on 08 March 2017

The Government today announced increasing National Insurance Rates for the self-employed by 1% to 11% in April 2019.  Only those with profits above £16, 250 will have to pay more.

Alex Henderson, tax partner at PwC, commented

"This proposal marks a significant shift in UK tax policy. A key feature of the tax system over the last 40 years has been to incentivise entrepreneurship, recognising the risks that come with self-employment.  By helping businesses to grow and employ people, governments reap greater tax revenues in the longer term.  

“The measure technically doesn't break the short lived pledge not to increase NI, IT, or VAT in this parliament, as class 4 NIC was never included.  But many business owners will be concerned however that they are now in the Chancellor's sights for the remainder of this parliament.  While the Chancellor's logic about removing anomalies in the system is hard to fault, it has an emotional effect on self-starters - the very people the Chancellor most needs to rely on.   My worry is that by binding themselves with the tax lock, the Government will continue to look at the entrepreneurial sectors of the economy for the tax rises it needs."



About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

« Budget 2017 - PwC comments on the impact to local government | Homepage | PwC's head of tax: A treading water Budget but the NI change opens up a big potential money spinner »

  • Contact us
  • +44 (0) 20 7213 1768

Specific and out of hours contacts