This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-39205701

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
Budget 2017: National Insurance rate rise criticised Budget 2017: National Insurance rate rise criticised
(35 minutes later)
Rises in National Insurance Contributions (NICS) for self-employed workers have been criticised as "penalising entrepreneurs".Rises in National Insurance Contributions (NICS) for self-employed workers have been criticised as "penalising entrepreneurs".
Chancellor Philip Hammond announced in the Budget that the rate for Class 4 NICS would rise from 9% to 10% in April 2018, and to 11% in 2019.Chancellor Philip Hammond announced in the Budget that the rate for Class 4 NICS would rise from 9% to 10% in April 2018, and to 11% in 2019.
That compares to 12% currently paid by employees.That compares to 12% currently paid by employees.
"The difference in National Insurance Contributions is no longer justified," Mr Hammond said."The difference in National Insurance Contributions is no longer justified," Mr Hammond said.
Previously self-employed people paid lower NICS than employees, as they received fewer state benefits.Previously self-employed people paid lower NICS than employees, as they received fewer state benefits.
But the chancellor said the self-employed now had equal access to the new state pension. He also said that the government would consult on parental benefits, some of which self-employed people cannot claim.But the chancellor said the self-employed now had equal access to the new state pension. He also said that the government would consult on parental benefits, some of which self-employed people cannot claim.
The increase in the NICS rate will raise £145m a year for the Treasury by 2021-22. The chancellor said all self-employed people who earned less than £16,250 would be better off.
Around half of the 4.8m workers registered as self-employed earn less than £13,000, according to the think tank the Resolution Foundation.
As a result it said most such workers - such as low-paid hairdressers - will be better off by 2019/20.
Winners and Losers
source: Resolution Foundation
But the rise, which will cost those affected an average of 60p a week, was criticised by entrepreneurs.But the rise, which will cost those affected an average of 60p a week, was criticised by entrepreneurs.
"Increasing National Insurance rates for the self-employed could be a further step by the government to penalise those who are taking risks and starting a business, often giving up their regular pay cheques to take a chance at creating something great," said Lucy-Rose Walker, the chief executive of Entrepreneurial Spark."Increasing National Insurance rates for the self-employed could be a further step by the government to penalise those who are taking risks and starting a business, often giving up their regular pay cheques to take a chance at creating something great," said Lucy-Rose Walker, the chief executive of Entrepreneurial Spark.
The chancellor said all self-employed people who earned less than £16,250 would be better off. Those paid less than £16,250 will be better off because of a planned abolition of of a different class of NICS - Class 2 - in April 2018.
That is because of a planned abolition of of a different class of NICS - Class 2 - in April 2018. Under Class 2 NICS, self-employed workers pay 2% on qualifying earnings between £5,965 and £8060, amounting to £2.80 a week.
Under Class 2 NICS, self-employed workers pay 2% on qualifying earnings between £5,965 and £8060, typically amounting to £2.80 a week. The increase in the NICS rate will raise £145m a year for the Treasury by 2021-22.