The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
To address this difference, the Chancellor announced increases in Class 4 NICs. From April 2018 when the Class 2 weekly rate is abolished, the main Class 4 rate was to increase from 9% to 10% of profits between the lower and upper profits limits. And from April 2019, the main Class 4 rate was to increase by a further 1%, to 11% of profits.
However, post Budget, Mr Hammond faced a backlash by Conservative backbenchers, who accused him of breaking a general election manifesto commitment not to put up National Insurance, income tax or VAT.
According to a BBC report , the Chancellor’s letter explaining his change of heart, said:
"It is very important both to me and to the prime minister that we are compliant not just with the letter, but also the spirit of the commitments that were made.
In the light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measure set out in the Budget."
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The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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