HC Deb 19 December 1974 vol 883 cc536-8W
Mr. Winterton

asked the Secretary of State for Social Services what representations she has received from the National Federation of Meat Traders relating to the proposed increases in the national insurance contributions for the self-employed; and what replies she has sent.

Mr. O'Malley

We have received two letters, to which replies have been sent on the lines indicated in my reply to the hon. Member on 15th November.— [Vol. 881, c.274–5.]

Mr. Shepherd

asked the Secretary of State for Social Services what representations she has received from the National Dairymen's Association relating to the proposed increases in national insurance contributions for the self-employed; and what replies she has sent.

Mr. O'Malley

We cannot trace any such representation.

Mr. Kenneth Clarke

asked the Secretary of State for Social Services what individual records, if any, will be kept of the class 4 national insurance contributions paid by a self-employed person after April 1975; and what regard, if any, will be paid to such contributions in assessing a self-employed person's contributions record and consequent entitlement to benefit.

Mr. O'Malley

As provided by the Social Security Act 1973, class 4 contributions will be collected by the Inland Revenue along with Schedule D tax, and will be paid over in bulk to the Secretary of State, who will thus have no record of the amount collected from an individual. The 1973 Act also makes it clear, in Section 9, that a person's earnings factor for the purposes of entitlement to benefit is to be derived from class 1, 2 and 3 contributions only.

Mr. Kenneth Clarke

asked the Secretary of State for Social Services what categories of national insurance contributions will be payable after April 1975 by a person with two employments, in one of which he is self-employed and in one of which he is employed; what limits, if any, will be set to the total level of his contribution; and what is the legislative authority for the arrangements for contribution; and what is the legislative authority for the arrangements for contribution which the Government are proposing for such persons.

Mr. O'Malley

Sections 1(7), 2(2), 3(1), 5(1) and 5(2) of the Social Security Act 1973, as now amended to up-date to 1974 terms the 1972 illustrative figures in the Act, show that, in respect of such a person, class 1 primary and secondary contributions will be payable on all his earnings in respect of an employed earner's employment if the earnings exceed the lower earnings limit of £11 a week, up to the upper earnings limit of £69; and that, unless he can obtain exception on grounds of low earnings, he will be liable for a weekly class 2 contribution as a self-employed earner, plus class 4 contributions if his profits or gains chargeable to income tax under Case 1 or 2 of Schedule D exceed £1,600 a year. Section 6(1) and (2) of the 1973 Act and Regulations 15 and 28 of the Social Security (Contributions) Regulations 1973 and Regulations 58 and 60 of the Social Security (Contributions) Amendment Regulations 1974 provide for annual maxima of liability and for refunding contributions paid in excess of those maxima.

In the circumstances referred to in the Question, he will be entitled to a refund if his class 1 and 2 contributions exceed £201.37 a year, and also if his class 1, 2 and 4 contributions exceed £288.23 a year.