Question to the HM Treasury:
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.
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 |