3 million self-employed kicked in the teeth (again) by Tory Govt after NI pledge ditched
The pledge to abolish Class II National Insurance Contributions announced by former Tory Chancellor George Osborne has been broken.
The promise had already been delayed to 'allow' officials to work out how to ensure 3 million self-employed entrepreneurs would benefit as promised, while mitigating an unintended consequence that 300,000 others could face increased costs to access the new state pension. Not terribly difficult? A tax cut and simplification for 3 million (to not pay 2 completely different types of National Insurance at the same time) has now been shelved as the protection for 300,000 has been deemed too difficult to work out. Ditching the commitment raises c£350m a year for the Treasury. Quelle surprise.
The decision to break this pledge is a big disappointment for the self-employed, following on from fateful attempts to increase NICs on this group of generally low and moderate earners (the 'strivers') last Spring.
In addition, UKIP are still waiting for the Call To Evidence on late payments promised last March that has not appeared,
Spokesman for SME's Ernie Warrender said 'Once again HMRC's favourite cash cow, British Small Businesses, are to be kicked in the teeth by the Tories, whilst Big Business, the Tory Party's chums, get away with massive reductions in their tax bills. Small businesses, the self employed and the British High Street once again, get squeezed. There is only one Party that will stand up for Small Business and that is UKIP, with creative policies than encourage Entrepreneurs'.