Budget attacks self-employed

In the spring Budget Chancellor Philip Hammond turned on the self-employed

The “attack” on the self-employed in the spring Budget is damaging a part of the market which is already at a disadvantage, Alan Cleary, managing director of Precise Mortgages, has warned.

In the spring Budget Chancellor Philip Hammond turned on the self-employed. He announced higher taxes for the self-employed claiming the tax system is a big factor driving the move towards self-employment.

This will see class 4 NICs increase from 2% to 10% in 2018, with a further 1% increase in 2019 whilst dividend allowances are reduced from £5,000 in 2017 to £2,000 from 2018.

Cleary said: “This attack on the growing self-employed population fails to recognise that self-employed workers do not enjoy the same benefits as the employed, such as sick pay and holiday pay.

“One of the impacts could be that self-employed people may not be able to borrow as much money to buy their home as they will have less net income.

“Self-employed workers are already at a disadvantage to their employed peers when it comes to mortgages and this latest move does nothing to help.”

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Written by: Houseladder