M

Member

Speaking in the House of Lords on 6 February 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

The new £5,000 threshold will bite at around eight hours of work a week at the minimum wage, but market rates are generally a bit higher for this kind of work. My research on Mumsnet suggests that the rates that could bring national insurance contributions into play are around five hours per week. One of the effects of the Bill is to bring large numbers of small-scale employers into PAYE and national insurance returns for the very first time, and I do not suppose that the people involved have the faintest idea. Have the Government quantified the impact of this on these kinds of employers? Are they planning an information campaign to ensure that any new employers caught by the effect of the reduction in the secondary threshold are aware of their obligations, or will they be turning a blind eye to non-compliance?

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