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Press comment: NIC u-turn sensible move, but re-inforces unfortunate reputation

06/09/2018

The Chancellor has permanently shelved a cut to Class 2 NICs for the self-employed after Treasury's analysis found that around 300,000 people who make profits of less than £6,000 a year would have had to pay five times more in pension contributions than they currently do.

Jon GreerIf you’re covering this issue please see the following comment from Jon Greer, head of retirement policy at Quilter:

“This government is infamous for u-turns, a reputation it’s probably not keen on. However, while the Chancellor may look like he’s got egg on his face, this is a sensible move. A significant number of self-employed on lower incomes would have faced substantial rises in the voluntary payments they make to access the state pension.

“However, even with this necessary about turn, we still have the much larger self-employed savings conundrum. Figures from the ONS show that 45% of self-employed workers aged between 35 and 55 have no private pension. A savings policy for the self-employed needs to acknowledge that there are legitimate reasons why some self-employed people do not engage in pensions, particularly those on lower incomes. One of the biggest challenges facing this group is the lack of certainty and security of income. It makes sense to keep an open mind about creative savings solutions for the self-employed and we hope the DWP will consider a pension ‘sidecar’ which would give early access to cash if required, which could be helpful to self-employed people with volatile or insecure income.”

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.