Rachel Reeves Weighs New Tax on Self-Employed Professionals
Chancellor Rachel Reeves is considering a major tax rise that could affect thousands of self-employed professionals, including GPs and lawyers.
The proposal would make Limited Liability Partnerships (LLPs) liable for employers' National Insurance Contributions (NICs), currently exempt as their income is classed as self-employed.
The current exemption is an "accident of history" and introducing new "partnership NICs" was suggested by the Centre for the Analysis of Taxation.
Treasury insiders say the measure is being considered to close a multi-billion-pound gap in public finances, with government borrowing reaching nearly £100 billion in the first half of the financial year.
Author's summary: Chancellor Rachel Reeves considers new tax on self-employed.