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Spring Budget 2017 – the policies that matter for businesses

The policy announcement that got the most attention from self-employed journalists (besides the 43p increase in duty on a 1-litre bottle of gin) was the announcement that the National Insurance Contribution self-employed rate (Class 4) would be increased by 1 percent in April 2018 and another 1 percent in 2019. The Chancellor framed the increases as closing the total tax gap between employed and self-employed workers given that self-employed workers now enjoy the same state pension rights. In addition, the Chancellor cut the tax free dividend allowance from £5,000 to £2,000.

The only remaining announcement to get the attention of SMEs was the provision of £200m for projects to get private sector investment in full-fibre broadband networks.

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