Corporation tax and NICs

Corporation tax

Corporation tax rates have already been enacted for periods up to 31 March 2021. The main rate of corporation tax is currently 19%. As a reminder, the rate for future years is:

• 19% for the Financial Years beginning on 1 April 2018 and 1 April 2019
• 17% for the Financial Year beginning on 1 April 2020.

Class 2 National Insurance contributions (NICs)

The 2016 Budget announced that Class 2 NICs will be abolished from April 2018. The legislation to effect this measure was intended to be introduced this year.

In November 2017 the government decided to implement a one year delay so that Class 2 NICs will be abolished from April 2019.

The government is still committed to abolishing Class 2 NICs. The deferral allows time to engage with interested parties with concerns relating to the impact of the abolition of Class 2 NICs on self-employed individuals with low profits.

Class 4 NICs

The Chancellor announced in the 2017 Budget proposals to increase the main rate of Class 4 NICs from April 2018 but was forced to make a subsequent announcement that the increase would not take place and there will be no increases to NICs rates in this Parliament.

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