Thread: Budget
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Old 10-03-2017, 00:31   #25
nomadking
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Re: Budget

Quote:
Originally Posted by Chris View Post
Self employed people do not benefit in the same way as employees. We don't get statutory sick pay. Employees do. We don't get maternity/paternity leave. We receive less from the system so it is entirely fair that we pay less in, at least as long as we're going to continue the fiction that we are actually paying in to an insurance scheme, which we're not, really. It's just income tax by other means.
They charge more than employees are paid. That is meant to cover the other employee benefits. The longer term plans are to try and implement those other NI benefits for the self-employed. The new self-employed entitlement to state pension is now, not in 30-40 years time.
Quote:
The government says this was traditionally down to a lesser entitlement to benefits and pensions, but that these disparities have mostly been removed, so the difference in rates is unfair
Quote:
In April 2016, self-employed people were given rights to the state earnings-related pension scheme, which offers an extra £1,890 annually to those who have made 35 years of contributions – providing a boost of £37,500 over a 20-year retirement.
However, the combined changes in NIC contributions announced in the spring budget will cost a self-employed person just £193 each year, equating to £7,720 over a 40-year working life.
Paying out £7,720 to get £37,500 still seems a good deal for the self-employed.
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