By Simon Vincent, Senior Accountant at Hive Business.

It’s only been a week since the Budget and the Government has already made a U-turn on the announcement that NIC contributions for the self-employed would be increasing.

It’s perhaps not surprising given the non-stop criticism poor Phil has faced since the announcement, mainly levied at him for breaking a manifesto promise. I do find myself wondering why this particular breach caused such uproar though; isn’t breaking manifesto promises what politicians specialise in? Certainly it would seem that the whole Brexit case was similarly based on lies.

I’m perhaps getting beside myself a little, but this NIC increase was set to cost a mere £240 per year. I don’t recall any such criticism when the taxation of dividends caused £2,000 additional tax exposure last year. Somehow that particular tax increase was not a tax increase, but this most recent one is?

Maybe it’s because this particular NIC increase impacts the “white van man” rather than wealthy individuals who can afford to use a company. That’s how the media chose to spin it.

It remains to be seen what the official reason for the U-turn will be but for now its compliance with the spirit and not just the letter of the law. This is surely a lesson HMRC would like us all to learn. Maybe the Government should instead write better laws?

If you have any questions about The Budget and how it will impact your business, get in touch on 01872 300232 or email hello@hivebusiness.co.uk.