A tough lesson: part-time tutors are one of the groups likely to be hit by the little-known change [Image: Alamy].

I’m currently in this category.

Remember what I wrote yesterday about being a suicide risk because of being a carer, working in the media, and having particularly stressful life events to go through?

I guess you can add self-employment to that list now. Thanks for nothing, Philip Hammond.

And, by the way, this means his – and Theresa May’s – claim to have stuck to the Tory manifesto pledge not to raise people’s taxes is a lie.

Or do these vile Tories think those of us earning a pittance don’t count as people?

Jane Clark, a self-employed maths tutor who earns around £2,500 a year, faces a 400% increase in her national insurance contributions (NICs) if she wants to retain her right to a state pension.

That equates to an extra £588 a year, which is a good chunk of Clark’s earnings – and she is far from alone. Potentially, several hundred thousand self-employed people who earn below £6,000 a year will be clobbered, unless the government brings in measures between now and April next year to reduce the impact.

Philip Hammond had to ditch his grand plan to increase “class 4” NICs for the self-employed just a week after he announced it in the budget. It’s a spectacular U-turn – but it doesn’t mean the self-employed have got off scot-free.

While the chancellor’s latest announcement means middle and higher-earning self-employed people – those who would have been hit by the increase – are now off the hook for the time being, their less well-off counterparts are not so lucky.

The government is pressing ahead with the previously announced abolition of “class 2” NICs for the self-employed from April 2018. As things stand, this means many of Britain’s lowest-earning self-employed workers will either have to pay an extra £588 a year, or lose their entitlement to a state pension.

Source: New bombshell for self-employed: pay 400% more NICs… or lose state pension | Money | The Guardian

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