Working for yourself may no longer pay | KPMG | UK

Spring Budget 2017: Working for yourself may no longer pay

Working for yourself may no longer pay

Jo Bateson, private client partner at KPMG in the UK, comments on the Spring Budget 2017.

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Commenting on today’s Budget, Jo Bateson, private client partner at KPMG in the UK said:

“The Chancellor has announced that the annual dividend allowance will be reduced to £2,000 from £5,000,  as part of measures aimed at reducing the disparity between those working via a personal service company and those in self-employment, against everyday employees.

“We will have to wait to see if the Chancellor seeks to reduce this disparity further. However, he has made his intentions clear and those using company structures may need to review their position.

“To supplement this measure, the main rate of class 4 national insurance will increase from 9% to 11% by April 2019.

“Overall, for those earning between £50,000 and £100,000 per year, the cost of these two measures could be approximately £1,000 per year.”

-Ends-

 

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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 ooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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