SELF-EMPLOYED workers will save an average of £143 a year under plans to abolish a form of national insurance contribution (NIC) paid by people who work for themselves.
Class 2 National Insurance, which costs £2.75 a week for workers who make profits of over £5,885 a year, will be swept away in the next parliament under plans unveiled in yesterday’s Budget.
The move, unveiled alongside proposals to end the annual slog of filling in an annual tax return by digitising the process, was endorsed by small business groups yesterday.
The Association of Independent Professionals and the Self Employed said it would be a “big boost” for the self-employed, who number 4.5m across the UK.
The Treasury also announced plans to reform Class 4 National Insurance payments, which cost workers nine per cent of their profits made between £7,956 and £41,865.