Budget 2017 - PwC comments on the impact of NIC changes on financial services contractors and employers
Published at 15:09 PM on 08 March 2017
Commenting on the increase in the main rate of Class 4 NICs for the self-employed by 1% to 10%, with a further 1% increase in April 2019, Sarah Prior, financial services partner at PwC said:
"The Chancellor has focused on smoothing out the kinks between the self-employed, those contracted through limited liability partnerships and the rest of the UK’s workers through his announcement of future increases in Class 4 NIC. This will impact the large number of contractors working in the financial services sector.
"Those who provide their services through personal service companies could also be impacted by the cut in dividend tax allowance from £5,000 to to £2,000. These tax changes will be something that these service providers will want to take into account when deciding whether to work for themselves or as employees.
"Given the scarcity of some of the skills these contractors provide, it may be the case that the extra cost falls to the financial services sector itself.”
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