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National Insurance Contributions........

What do you guys think about the Budget's announcement yesterday about the 1% rise in Class 4 NI for the Self Employed? This will take effect from April this year and another 1% from next April '18. I can see both sides of the argument and with the increase in Council Tax, Business rates, increase in inflation, increase in machinery etc, all these 'little' increases will make our lives a little harder.

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      • PRO

        Sorry Richard just having a bit of  moan.  Went it to pay some money the other day and there was all the usual non workers there for their handouts, all with the latest smartphones and trainers being rude to the staff and demanding things.

        Jes

  • PRO

    I think it's simply a big headline-grabbing distraction tactic that has a 50/50 chance of happening in the end anyway.

    Notice how the entire national conversation is focused on this one relatively small issue, and not the stripped of housing benefit from young adults, more disability benefit cuts, and another corporate tax cut? 

  • PRO

    I think that those who are not self-employed are under a massive illusion about National Insurance.

    Class 4 contributions or tax on profit, has nothing to do with our personal contributions as per Class 1, where they are relevant for our Pension, Sick Pay, & JSA , etc or whatever name they now have

    Class 2 contributions only allow us to get a pension.

    So my question, if Class 2 is being dis-continued, how will make our yearly contributions for our basic state pension?

    • PRO

      As I understand most insurance payments made now, whilst allowing people to claim benefit, essentially pay for people who are already pensioners... it is the projected shortfall in the volumes of people who are yet to retire versus the diminishing numbers of taxpayers in the future.. lies the real issue.

      What we pay now, we think is for us, but it's not, it's for our parents & grand-parents,  it is our children and their children who will pay our pensions & benefits, hence the reason why the % of tax in the £ needs to increase.

  • PRO
    U-turn over Budget plan to increase National Insurance

    http://www.bbc.com/news/uk-politics-39278968

    • Good news. Of course many will say it's a sign of weakness, but others will say it shows strength to realise that you may have just got it wrong and have the guts to do something about it sharpish!

      • I agree. It shows that both May and Hammond do listen to their backbenchers and the public too.

        We can expect to be hit with an increase in 2021 if the Tories are still in power.....
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