KPMG - Elephant in the room as Chancellor hikes NICs | KPMG | UK

Spring Budget 2017: KPMG points out ‘elephant in the room’ as Chancellor hikes NICs for self-employed

KPMG - Elephant in the room as Chancellor hikes NICs

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

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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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For further information please contact:

KPMG Press office

Tel:  +44 (0) 207 694 8773

Louis Clark, KPMG Corporate Communications

Mobile: 07770 644 382  

Email: Louis.Clark@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff.  The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

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