§ 17. Mr. SymsTo ask the Chancellor of the Exchequer what estimate he has made of the change in levels of national insurance paid by the self-employed in 2001–02 as a result of the March Budget. [83205]
§ Dawn PrimaroloIt is estimated that the self-employed will pay about £420 million less in National Insurance contributions in 2000–01, but £520 million more in 2001–02 as a result of the March 1999 Budget.
§ 19. Mr. MackinlayTo ask the Chancellor of the Exchequer what discussions his Department has had with the Department of Social Security in respect of practices adopted by some companies to avoid paying national insurance contributions. [83207]
§ Dawn PrimaroloOne of the benefits of transferring the Contributions Agency and policy responsibility for National Insurance to the Inland Revenue is that the Departments will be able to combine their efforts in detecting and preventing artificial avoidance of National Insurance which cost the National Insurance Fund hundreds of millions of pounds a year in lost revenue.
In my right hon. Friend the Chancellor's Budget we announced a further move. We shall be bringing forward legislation shortly to counter avoidance in personal service provision.
§ Ms StuartTo ask the Chancellor of the Exchequer if he will make a statement on his reform of national insurance contributions. [83197]
§ Mr. MilburnIn March 1998 the Chancellor announced the most radical restructuring of the National Insurance system for 20 years, in line with the recommendations of the Taylor Report, The Modernisation of Britain's Tax and Benefits System'.
These reforms will improve work incentives by reducing burdens on the lower paid thereby encouraging people to move from welfare to work and simplify the structure of the National Insurance contribution scheme for both employees and employers.