The number of self employed has increased significantly over recent years, meaning they have become a target for tax increases.

In what appears to be a clear breach of the Conservative Party 2015 election manifesto not to raise certain taxes or national insurance, the main rate of class 4 national insurance will increase by 1% in April 2018 and another 1% in April 2019, costing up to an extra £350 each year.

If you operate through a company, the tax-free dividend allowance is reduced in April 2018 by £3,000, meaning extra tax of between £225 and £1,143 for each shareholder. It appears there may well be further measures to increase the tax burden on the self employed or other entrepreneurs.

The smallest self employed businesses with turnover less than £85,000 received a small bonus by the deferral of the introduction of “Making Tax Digital” quarterly reporting until April 2019