HC Deb 01 December 1983 vol 49 c614W
Dr. McDonald

asked the Secretary of State for Social Services what would be the saving in the 1984–85 tax year of abolishing the ceiling on national insurance contributions for (a) the employed, (b) the self-employed and (c) employers.

Dr. Boyson

If the upper earnings limit for class 1 contributions and the upper profits level for class 4 contributions were to be abolished in 1984–85—but the ceiling retained for the contracted-out rebate — the additional contribution revenue, including surcharge, would be

  1. (a) £580 million from employees
  2. (b) £65 million from self employed
  3. (c)£740 million from employersall on the same assumption as Cmnd. 9092.

If the ceiling were abolished, consequential changes to benefit and contribution rates would require further consideration.