Apropos the Taylor Report

Suggest compulsory pension contributions

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There is clearly a difference between self employed NIC and NIC for employees. The cost to an employer adds 13.8% to employment costs.

Surely the answer is to make pension contributions  compulsory for self employees (especially those in the gig economy) based on a percentage of profit with a fallback to NEST.

 

Replies (3)

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RLI
By lionofludesch
13th Jul 2017 12:29

It's more complicated than that.

Not all your NI goes on pensions.

Employee's NI amounts to 25.8%.

Pensions under AE peak at 8%.

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boxfile
By spilly
15th Jul 2017 09:10

The issue is that the "employers" like Uber etc are avoiding paying the Er's NI by saying everyone is self employed. It's not the amount of NI that self employed pay that is the problem, more that companies are wriggling out of paying the additional tax that Er's NI really is.
I fail to see how Deliveroo can pay an hourly rate and not be employing someone, whereas Uber merely rakes off a percentage of overall takings in fees.

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RLI
By lionofludesch
15th Jul 2017 09:34

Couldn't agree more. I picked up a job this week - self employed chef. His only "expenses" seem to be commuting costs to the restaurant at which he worked.

The restaurant's gone bust now.

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