--- title: Government u-turn on Class 4 National Insurance description: Following on from proposed increases to Class 4 NICs paid by self-employed individuals there has been a government u-turn on Class 4 National Insurance. image: https://blog.shorts.uk.com/hubfs/Stock%20images/Attractive%20designer%20with%20arms%20crossed%20in%20a%20studio.jpeg --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [Payroll](https://blog.shorts.uk.com/topic/payroll) # Government u-turn on Class 4 National Insurance Jo Grant - 26 April 2017 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/Stock%20images/Attractive%20designer%20with%20arms%20crossed%20in%20a%20studio.jpeg) ###### One of the significant announcements Chancellor Philip Hammond made on Budget Day was the proposed increases to the main rate of [Class 4 National Insurance](https://blog.shorts.uk.com/could-you-reclaim-class-4-national-insurance-ni) Contributions (NICs) paid by self-employed individuals from 9% to 10% from April 2018 with a further increase planned from 10% to 11% from April 2019. ## Government u-turn on Class 4 National insurance The Chancellor subsequently announced that the government will now not proceed with the proposed increase in Class 4 NICs rates . Self-employed individuals currently pay Class 2 and Class 4 NICs. Class 2 NICs are to be abolished from April 2018. If you have any queries on this or any other payroll issues, please do not hesitate to contact a member of the Payroll team on 01246 559955 or click [**here**](https://www.shorts.uk.com/contact-us/) to use our contact form.   ***Internet link:** [BBC news](http://www.bbc.co.uk/news/uk-politics-39278968)* ![author](https://blog.shorts.uk.com/hubfs/1678438830033-1.jpg) #### Jo Grant Jo is the Senior Marketing Manager at Shorts Chartered Accountants. [View my articles](https://blog.shorts.uk.com/author/jo-grant) Tags: [Payroll](https://blog.shorts.uk.com/topic/payroll), [Business Taxes](https://blog.shorts.uk.com/topic/business-taxes) Share this on - - - [Questions? 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