Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, how many (a) people and (b) businesses claimed lower profits limit on national insurance contributions in (i) 2013-14 and (ii) 2014-15.

The lower profits limit on National Insurance is automatically applied to an individual’s self-employment profits. The number of individuals benefiting from this 0% National Insurance contributions band is estimated to be around 3.9 million people in 2013-14 and it is projected to be 4 million people in 2014-15. The lower profits limit is applied to an individual’s total self-employment profits and therefore an estimate of the number of businesses benefitting is not available.

These estimates are based on the 2013-14 Survey of Personal Incomes, projected to 2014-15 using economic assumptions consistent with the Office for Budget Responsibility’s November 2016 economic and fiscal outlook.