What's the hype about?


Bearing in mind that I believe all decisions made by politicians, especially those in government, are thought out well beforehand. All pro’s and con’s are endlessly discussed and possible ramifications calculated to the last penny. This is why I am looking at the latest storm, the one called ‘White Van Man Scam’. Obviously, when looking at previous promises, now broken, it defies belief any party could just make such a blunder. But is it a blunder? Firstly it is not making the government particularly richer. A few millions and for the most part it does not seem to be much of a loss for the white van chaps either. But looking at the system, it does seem overly complicated, seven grades and a few different percentages. Employees pay nothing on the first £155 earned (weekly) that is up to £672 a month, anything over that and up to £827 a week will be charged at 12%. Anything over £827 is charged at 2%. These are the figures for category A. But self-employed people are paying differently. It depends on the profit they make in a year. I note two classes – Class 2 and Class 4. Class 2 if profits are £5,965 per annum and over up to £ 8,060 or Class 4 when over that. Profits are worked out (supposedly) by deducting all expenses from income. So, it pays to have a good accountant I’d say!
Class 2 pays £2.80 a week and Class 4 - 9% on profits between £8,060 and £43,000, 2% on profits over £43,000. So the 9% will become 10% which means on Class 4 if profits are £8,060 the difference between £725.40 and £806.00 will be the total of £80.60! Yes, people you have heard it here £80 per annum. £1.53 per week. I am sorry but please media people can you lessen the hype? Can we all calm down?
I am not sure what Class 2 will be after April but I think it will be slightly over £3.00. Well, one message to self-employed people is this – Please get real! If you make decisions based on this, such as you will no longer vote for the Conservatives ( personally I don’t either but let that rest) then perhaps find paid employment and vote Labour. So, it's no blunder but an attempt to straighten out the system. But for me being a bit dumb - I would have waited until after Brexit. In that respect the government has indeed made a blunder.

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