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Correspondence from readers on topical subjects.
NIC – the future is simplicity
It has been almost a year since the then Chancellor of the Exchequer George Osborne announced a change in National Insurance contributions.
The new ruling meant that contributions were calculated to consolidate the state pension into a so-called ‘single tier’. This was a simpler state pension that should have made planning for retirement easier. The Treasury said the change to the rules would bring in an extra £5.5bn a year. Yet what this has really meant is that affected employees – those who were members of contracted out schemes – took a hit of 1.4% on their earnings while employers had to pay an extra 3.4% in contributions.
As ever the new regulations do not take into account the different circumstances of individual employees. Those with ‘portfolio careers’ seem to have been overlooked. These are people who...
