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Spring Budget 2017 briefing: key measures at a glance

In our roundup of the Spring Budget 2017 essentials, we review the key tax measures announced in a slimline event, from the unexpected hike in national insurance rates for the self employed to a cut in the tax-free dividend allowance, potential tax liability for pensions transferred overseas, corporation tax cuts and VAT roaming charges for long haul travellers for the first time

NICs 4 for self employed increases to 11% by 2019

The major announcement in the Budget was the increase in Class 4 NICs for the self employed, which will see the rate move from 9% to 11% over the course of the next two years. From April 2018, the rate will be 10%, moving to 11% a year later. This compares with the 12% rate currently paid by employees.

The move follows the abolition of Class 2 NICs, a flat rate charge of £2.80 a week on earnings above £5,965 paid by the self employed. From April 2018, Class 4 NICs will rise to 10% and to 11% in April 2019.

This will compare with the current 12% paid by employees.

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