A Critical Assessment of the Case for Reform of National Insurance Contributions for the UK's Self-Employed
| Author | Iain Mathieson |
| Position | Student at the University of Dundee (4th Year LLB Scots Law with French). |
| Pages | 1-8 |
1
Dundee Student Law Review, Vol. 4(1), No.2
A Critical Assessment of the Case for Reform
of National Insurance Contributions for the
UK’s Self-Employed.
Iain Mathieson
Introduction
The case for reform of National Insurance Contributions (NICs) for the UK’s self-employed
has recently been the subject of much political debate. As a result, the Office of Tax
Simplification (OTS) published its recommendations for a less complex and more equitable
system of NICs,
1 in particular where self-employed individuals are concerned.
In his 2016 Autumn Statement, the Chancellor of the Exchequer set out the Government’s
intention to reform NICs.2 This essay will critically assess the Government’s case for reform,
specifically in relation to the abolition of Class 2 contributions, in favour of a reformed system
of Classes 3 and 4 for the self-employed.
This assessment will be made in two parts: part one will contextualise and set out the
substantive reforms; while part two will specifically address the contentious provisions for
those self-employed individuals who will have insufficient earnings for Class 4 contributions
under the new regime.
This work will seek to show that while this area of law is in need of significant reform, the
Government proposals do not, in their current state, effectively achieve its desired goals of
simplicity and equity.
Student at the University of Dundee (4th Year LLB Scots Law with French).
1 OTS, “The closer alignment of income tax and nationa l insurance” (PU1909, 2016).
2 HM Treasury, Autumn Statement (Cm9362, 2016).
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