Draft Finance Bill 2017: Abolition of Class 2 National Insurance contributions

Published on 2 February 2017

While the LITRG broadly welcomes simplification of the National Insurance process for the self-employed, we remain deeply concerned that those on the lowest incomes may find that funding voluntary Class 3 NIC is beyond their reach, causing them to require means-tested state support in the future instead of support to which they have contributed. We recommend that a lower rate of Class 3 contribution be introduced so that self-employed earners with profits below the small profits limit can continue to build up a contributions record at low cost.

Merger of financial advice services ‘a great opportunity'
©shutterstock/gualtiero boffi

The LITRG submission can be found here: PDF icon Draft Finance Bill 2017: Abolition of Class 2 National Insurance contributions – LITRG response

(31-01-2016)

Contact: Gillian Wrigley (please use form at http://www.litrg.org.uk/contact-us) or follow us on Twitter: @LITRGNews