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Written question asked by Mohammad Yasin (Labour) on Wednesday, 2 April 2025, in the House of Commons. It was due for an answer on Monday, 7 April 2025. It was answered by James Murray (Labour) on Thursday, 10 April 2025 on behalf of the Treasury.


National Insurance Contributions: Earnings Limits

Question

To ask the Chancellor of the Exchequer, whether she has made an estimate of the potential revenue raised by removing the 2 percent NI on earnings over the threshold and charging a flat rate of 8 percent.

Answer

The impact of raising the additional rate of employee National Insurance Contributions (NICs) by 6 percentage points to 8 percent has not been directly evaluated.

The impact of a 1 percentage point increase in the additional rate of employee NICs has been published. HMRC regularly publish statistics relating to the direct effects of illustrative tax changes, including changes to NICs rates in section 9. The most recent version of this publication can be found on GOV.UK:

https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes


Secondary information

Type
Written question
Reference
43547
Session
2024-26
Subjects
National insurance contributions Earnings limits
Contains statistics
Yes
Link
View this Written question on www.parliament.uk