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.”



For full Budget coverage please visit pwc.co.uk/budget


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 today's Budget and the financial services sector - damp squib or thankfully quiet? | Homepage | Budget 2017- PwC comments on R&D tax credits red-tapereduction - boost for financial sector's cyber security efforts? »

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

Specific and out of hours contacts