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

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.