Government scraps delayed NIC tax cut for self-employed

'Sensible move'

Tom Ellis
clock • 2 min read

The government has scrapped its already-delayed plans to give the self-employed a National Insurance contribution (NIC) tax break.

The move follows analysis from the Treasury that found around 300,000 self-employed people making less than £6,000 a year would have had to pay five times more in pension contributions than they already do. Labour shadow Chancellor John McDonnell had called the move "another betrayal of the self-employed". The new bill had been set to scrap Class 2 NICs, where those who are self-employed and earning below the small profits threshold of £6,025 can pay a weekly rate of £2.85 in order to receive state pension entitlements.  Under the proposed rules, which were set to be introduced in ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

The Conservative IHT family home pledge and the behaviour it may reward

The Conservative IHT family home pledge and the behaviour it may reward

'Taxation raises revenue. It also changes behaviour, sometimes as intended, sometimes not'

Tony Müdd
clock 12 October 2026 • 5 min read
The tax levers advisers should watch – whatever the Budget brings

The tax levers advisers should watch – whatever the Budget brings

Rather than any single flagship measure, several tax ideas keep resurfacing in the Budget debate, from property reform and a possible return of CGT indexation relief to taxing middle earners more. Michael Edwards sets out the levers advisers should have...

Michael Edwards
clock 09 October 2026 • 3 min read
Conservative party pledges to axe IHT on family homes

Conservative party pledges to axe IHT on family homes

Couples would also be able to pass on £1m tax free

Sophia Panayi
clock 07 October 2026 • 2 min read