Self-employed Contributions

HM Treasury written question – answered on 1st October 2015.

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Photo of Baroness Kramer Baroness Kramer Liberal Democrat Lords Spokesperson (Treasury and Economy)

To ask Her Majesty’s Government how many people who pay (1) Class 2, and (2) Class 4, National Insurance contributions below the Lower Profits Limit also employ (a) one person, (b) two people, (c) three people or (d) fewer than 10 people.

Photo of Baroness Kramer Baroness Kramer Liberal Democrat Lords Spokesperson (Treasury and Economy)

To ask Her Majesty’s Government what is the average amount paid in Class 4 National Insurance contributions below the Lower Profits Limit in each of the last five years.

Photo of Baroness Kramer Baroness Kramer Liberal Democrat Lords Spokesperson (Treasury and Economy)

To ask Her Majesty’s Government how many people with profits smaller than £10,000 paid (1) Class 2, and (2) Class 4, National Insurance contributions in each of the last five years, and what was the average amount paid.

Photo of Lord O'Neill of Gatley Lord O'Neill of Gatley The Commercial Secretary to the Treasury

Estimates of the number of self-employed individuals who employ other people are not available.

No Class 4 National Insurance Contributions (NICs) are paid on profits below the Lower Profits Limit (LPL). Class 4 is only charged on profits above the LPL.

Estimates of the number of individuals paying self-employed National Insurance Contributions on profits below £10,000 and the average of their contributions are in the table attached.

Number of individuals with profits of £10,000 or less paying NI Contributions (thousands)

Average paid by individuals with profits of £10,000 or less paying NI Contributions (£)

Tax Year

Class 2 NIC

Class 4 NIC

Class 2 NIC

Class 4 NIC

2010-11

1,600

865

103

144

2011-12

1,720

575

107

107

2012-13

1,830

565

113

95

2013-14

1,890

494

116

89

2014-15

1,860

467

117

80

The level of the LPL for these years is in the table below.

Tax Year

Class 4 NIC Lower Profit Limit (LPL)

2010-11

£5,715

2011-12

£7,225

2012-13

£7,605

2013-14

£7,755

2014-15

£7,956

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