UK self assessment tax return : What are the Possible changes to Tax and National Insurance?

In the earlier blog, we hope you have enjoyed our beginner guides for self-assessment tax returns. In this blog More Group has provides some best possible changes to Tax and National Insurance. Please, go down and enjoy our blog!

Traditionally National Insurance in the UK was a contributory form of cover against sickness and unemployment, and ultimately provided retirement pensions and further benefits. National Insurance has been subject to various amendments and improvements over the years since it was first introduced in the late 1940s by the UK government. 

The purpose of NI is to contribute towards your state pension. According to the UK government, you will begin to pay towards your National Insurance if you are 16 years old or over, an employee earning above £162 a week or self-employed and making a profit of £6,205 or more a year. Data shows that a large number of self-employed are women; this change will mean leaving them in a vulnerable position.

Recent news has confirmed that there could be some changes in the future to National Insurance for people who are self-employed (running your own business or classify yourself as a contractor or a sole trader). Here are some of the key facts:

• During 2018 it was announced that the UK government were considering to eliminate National Insurance Classes (NIC) for the self-employed. However, these plans have now been delayed for a time.
• The reason for the pushback was unpronounced to have been the raise pf concerns in regards to how the abolishment of NICs would affect the lowest-earning self-employed individuals in the UK.
• In comparison to non-self-employed workers, the figures proved that this would mean they would have to pay around £593 extra per year or they would lose their right to a state pension. Click here to for Non-resident tax return help! 
• It said that when class 2 NICs are obliterated, individuals affected would have to pay about five times more to build up an entitlement to related benefits such as the state pension.

The National Insurance changes would only affect self-employed individuals whose incomes are under the small profits threshold. Statistics issued earlier this year presented there were 967,000 people within these conditions living in the UK back in 2015/2016.

If you are self-employed and would like a free consultation about how this change might affect you, please get in contact with More Group, and we will be happy to advise you. We can assist you in calculating your tax liability locally and across the globe. By conscripting the support of a professional, you can be self-assured you are compliant with tax laws. More Group offers Personal Tax return service for Ireland & US self assessment tax return service.

It can be challenging to keep up to date with the ever-changing global economy and domestic laws. More Group’s international and local teams are dedicated to being your experts. Please, get in touch with us for instant help and explore our main webpage for help with the personal tax return.