Asked by: Baroness Kramer (Liberal Democrat - Life peer)
Question to the HM Treasury:
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.
Answered by Lord O'Neill of Gatley
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 |
Asked by: Baroness Kramer (Liberal Democrat - Life peer)
Question to the HM Treasury:
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.
Answered by Lord O'Neill of Gatley
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 |