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National Insurance Contributions: Coronavirus

Question for Treasury

UIN HL6077, tabled on 23 June 2020

To ask Her Majesty's Government, further to the research paper by the Taxpayers' Alliance Tax reforms to secure a recovery from coronavirus, published on 3 June, what assessment they have made of the impact of employers’ national insurance contributions on the sustainability of supply chains; and what plans they have, if any, (1) to abolish the requirement for employers to contribute to national insurance, and (2) to replace those contributions with a payroll tax of 10 per cent on wages above £4,500 per annum.

Answered on

7 July 2020

The Government considers all aspects of its support to businesses together and has therefore made no specific assessment of the impact of employers’ national insurance contributions on the sustainability of supply chains.

The Government has provided unprecedented levels of support to businesses during the Covid-19 pandemic, including the Coronavirus Job Retention Scheme, the Coronavirus Business Interruption Loan Scheme, tax deferrals, a business rates holiday, and other business support grants.

While the Government keeps all taxes under review, there are no current plans to abolish employer national insurance contributions and to replace them with a payroll tax.

Answered by

Treasury