Chancellor scraps tax cut for selfemployed

A tax cut for millions of Britain’s self-employed people has been scrapped by the Treasury.

The scrapping of Class 2 National Insurance Contributions (NICS) had been due to take effect in April this year but Chancellor Philip Hammond delayed it by 12 months – and has now cancelled the proposal altogether. The move would have given three million workers an extra £130 a year.

Shadow chancellor John Mcdonnell accused the government of betraying the self-employed, saying: “This is yet another betrayal of the self-employed. These people are the engine of the economy and have been let down again, while giant corporations have seen their tax bills slashed.”

Although more than three million were set to benefit from the tax cut, there were fears the move would hit 300,000 selfemployed workers who earn under £6,000 a year. They would have been moved to Class 3 NICS – raising their weekly payments from £2.95 to £14.65.

Treasury minister Robert Jenrick, said: “We have engaged with interested parties to explore the issue, and further options for addressing any unintended consequences.”