Apparently, chancellor Phillip Hammond plans to increase taxes for self employed workers by 10% this year and a further 11% next year.
Currently, self employed workers pay nine percent of their earnings in National Insurance. Statistics have revealed though that 2.48 million people could soon be having to pay an extra £700 a year in response to this tax increase.
Therefore, within the next four years this would apparently raise a further £2 billion for the government.
However, this has become a rather controversial topic for many and will impact millions. In 2015, the Queen’s speech revealed that there would not be any increases in income tax rates, national insurance or value added tax for at least another five years. However, the legislation passed excluded those that were self employed. Instead, it focused on the employed.
Many were not aware of this though. A member of The Forum of Private Business describes: “small businesses are being used as a cash cow by the Government.”
“Ministers say they want to encourage start up businesses but they are throttling the life out of them by hitting them with tax rises from every angle.”
“Self employed people set up businesses because they are passionate about what they do and yet thousands find themselves on the breadline each month.”
“But many will no doubt decide it is not worth it financially and find themselves a job instead.”
“This will be a tragedy for for the country which needs small businesses to thrive.”
So what do you think of this? Does this affect you? Let us know in the comments below.