The government plans could also bring about a sea change in how self-employed individuals, going forward, change the way they allocate what they will get in salary and dividends.
Mr Timms says: “The current crisis may bring about some change in how remuneration is paid. Dividends benefit from no national insurance, which has made them an attractive and tax-efficient option for owners to extract profits from their business.
“It is unlikely to cause the end of remuneration through dividends, unless there are significant changes to tax treatment, but it may result in a more equal balance between what is taken as salary and what is taken as dividends.”
Mr Starmer adds: “The Chancellor will hopefully give financial advisers more to think about when he makes changes to even out NI contributions which will concentrate the mind on less obvious means of “tax” mitigation and put greater onus on the accumulation of capital and capital profits during their working lives.”
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