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To ask Her Majesty’s Government what were (1) the average annual gross earnings, and (2) the average gross hourly rate of pay, in the United Kingdom, both in nominal terms and adjusted for inflation, of those who were self-employed for each year or part-year since 1997 for which data available.
The information requested falls within the responsibility of the UK Statistics Authority. I have asked the Authority to reply.
In the absence of the Director General for the Office for National Statistics, I have been asked to reply to your recent Parliamentary Question asking Her Majesty’s Government what were (1) the average annual gross earnings, and (2) the average gross hourly rate of pay, in the United Kingdom, both in nominal terms and adjusted for inflation, of those who were self-employed for each year or part-year since 1997 for which data available. (HL2352)
The earnings of self-employed people are difficult to define and estimate due to the various different ways in which self-employed people get paid and how they manage their accounts.
The main source of approximations for the earnings of the self-employed is the Family Resources Survey (FRS), a survey of households administered by the Department for Work and Pensions. This survey provides estimates of self-employed individuals’ income based on the information they would normally provide for their income tax self-assessment returns to HMRC.
The table provides the available estimates. They are based on the average weekly income over the year. The median is preferred over the mean as it is a better indicator of changes over time. This is because the mean income is often distorted by unusually large values.
|Income from self-employment|
|Financial year||Nominal terms||At constant 2012/13 prices1|
Source: Family Resources Survey, Dept for Work and Pensions
Adjusted using the Consumer Prices Index Median weekly income (£)
The estimates include the effect of individuals who made a loss over the year in their business and so reported a negative income for the year. The estimates are derived from a representative sample of UK households but, as for any sample survey, are subject to a degree of sampling error and, therefore, should be treated with caution.