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Time for a different approach on employer’s NIC?

Colin Ben-Nathan (KPMG) suggests that it is now time for an open and considered debate about employer’s NIC.
 

In his Spring Budget 2017 the chancellor Philip Hammond announced his intention to increase the main rate of class 4 NIC from 9% to 11% by 6 April 2019. Had this proposal gone through it would have resulted in the near full alignment of the self-employed NIC charge with employee’s class 1 NIC. But in the end the proposal was dropped amid questions of whether it breached the Conservative Party’s 2015 election manifesto.

However politics aside from a policy perspective many would argue that the proposal had a lot to commend it.

Historically self-employed NIC has been set at a lower rate than employee’s NIC as the following example illustrates:


 

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