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Lord Sikka (Lab)

Speaking in the House of Lords on 9 June 2025

Debate

Social Care and Special Education Charities: Employer National Insurance Contributions

Contribution

My Lords, partners of big law and accountancy firms derive most of their income from one source but, despite that, they are not deemed to be employed by the firm. Therefore, the firms do not pay employer’s national insurance on the partners’ share of profits. The big four law firms are avoiding about £4 billion a year in employer’s national insurance contributions. Can I urge the Minister to look into this and bring forward reforms, so that we can have lots more revenue for the things that we need?

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