Now that Mr. Hammond has been speaking about the Budget for 2017, the main points are given below
1. Class 4 – NIC for Self Employed to increase from 9% to 10% in April 2018 & to 11% in April 2019
2. Class 2 – NIC will be axed from April 2018
3. Tax FREE Dividends – to be reduced from £5,000 to £2,000 in April 2018
So, how is this going to affect the Self Employed Businesses? Yes, there will be a rise in Class 4 NIC payments but it could offset the axing of Class 2 NIC payments.
Is it time to go Limited?
Even there, the TAX FREE DIVIDENDS are getting reduced from £5,000 to £2,000 & after that it is getting taxed at 7.50%.
Are you getting confused?
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