Class 4 National Insurance Contributions - Statement

Part of the debate – in the House of Lords at 4:08 pm on 15th March 2017.

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Photo of Lord Harris of Haringey Lord Harris of Haringey Labour 4:08 pm, 15th March 2017

My Lords, many of those who are self-employed are also registered for value added tax. I declare an interest as such a person. However, the Government, with effect from 1 April, will introduce a flat rate for limited-cost businesses under the VAT flat rate scheme. This will have an immediate effect for many people in that position of increasing the money they pay to HMRC by a margin of 2% or 3%—in some cases more—of their turnover. Is that consistent with the spirit of the Conservative manifesto?