The Government looks to level the playing field between the employed and self-employed from a tax perspective by closing the gap on National Insurance Contributions
KPMG’s tax partner Colin Ben-Nathan responds:
“Whilst the Chancellor announced the beginnings of an alignment in taxation between the employed and self-employed with a rise in the class 4 NIC rate from 9% to 10% from April 2018, the elephant in the room is employers’ NIC which, as the name suggests, applies only to the employer. At 13.8% this is a material cost to employers at a time when automation and offshoring means that jobs are increasingly under threat.
“It is clear that with the rise of the gig economy, the differences between employment and self-employment are becoming harder and harder to discern. We hope employers’ NIC is something which the Government will consider further when the Taylor report is published later this year.”
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