Budget '˜tax hike' on self-employed
A '˜tax hike' for West Sussex's self employed has been criticised by the Federation of Small Businesses (FSB).
Chancellor Philip Hammond’s first Spring Budget included plans to increase National Insurance Contributions (NICS) for the self-employed in both 2018 and 2019.
He argued that people who earned less than £16,250 would be better off, but the move has been widely criticised.
Brian Woods, FSB Surrey and West Sussex regional chairman, said: “The National Insurance rise to ten per cent next year and 11 percent in 2019 should be seen for what it is – a £1 billion tax hike on those who set themselves up in business.
“This undermines the Government’s own mission for the UK to be the best place to start and grow a business, and it drives up the cost of doing business.
“Future growth of the UK’s 4.8 million-strong self-employed population is now at risk.
“Increasing this tax burden, effectively funded by a reduction in corporation tax over the same period, is the wrong way to go.”
However he welcomed the £435m relief for those hit by increases to their business rates bills in April, following national revaluation, and a £300m discretionary relief fund for local authorities.
Mr Woods added: “FSB has called for more frequent revaluations. We’re disappointed that this now won’t happen until 2022 at the earliest.
“In terms of fundamental reform of an outdated system, today FSB calls for a cross-party review, such as a Royal Commission, to consider what a fair, modern business tax system would look like.”
Will you be affected by the changes? Email the newsdesk.
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