Changes afoot for the self employed

[ProDave]

The Taylor review was published last year https://www.personneltoday.com/hr/taylor-review-employers-need-know/

I don't recall any discussion about it here.

The two things that stand out for me:

National insurance contributions for employed and self-employed workers should be moved “closer to parity”. Taylor says that the “principles underlying the proposed NI reforms in the 2017 spring budget are correct” – chancellor Phillip Hammond famously U-turned on these proposals because it broke the Conservatives’ 2015 manifesto commitments.

 

If NI contributions from the self-employed are raised, then there should be a concomitant improvement in pension provisions and family-friendly rights for these individuals.

So what extra pension and "benefits" can we look forward to?

and

Cash-in-hand payments for jobs should be phased out and replaced with electronic transactions via platforms such as PayPal.

And just how do they enforce that?

 

[Sharpend]

Well that looks like buttering up ready for the cull? 

We are already entitled to Holiday from a firm that we sub too for over so many weeks, I’ve never received it and if you ask then you’d have thought you were asking for Crown Jewels. 

So expect a pension as well????????

 

[Evans Electric]

As far as I remember and based what I was told ,    our ,  (Self Employed) NI  contributions  entitled you to the state pension .and that was it  !!   Didn't entitle you to unemployment benefits  after  , I think,  2 years of SE .    

So if they wish to increase it , they should first declare what the contribution pays for  ,  because I can't see them wanting thousands of SE,s  signing on the dole  everytime a job fell through  and you had a week off. 

This is much the same as making us pay  income  tax on what we "might" earn next year "On account".  And scrapping the 714 system  , bringing in the hated  CIS . 

I think with the lack of apprentice training plus  all the additional regulations they pile on you ..there will be national shortage of SE tradesmen .....sooner rather than later. 

NB:   I may be wrong with this but I also believe you can stop paying NI after 40 yrs  ,,,don't take my word on that  though.

and  cash payments 

And just how do they enforce that?

Isn't there a move afoot to get shut of cash  ,    one & two pennies  were mentioned today . 

 

[ProDave]

I plan to retire in 5 years when I hit 60. I won't get my state pension until I am 67.  Can I sign on as "unemployed" for those 7 years?  How do you "stop" being self employed?

Re NI contributions after 40 years.  For the early part of my working life I was contracted out of SERPS as part of the company pension.  Under the new pension rules that came into force a few years ago I would not qualify for the new "full" state pension because of being contracted out.  But if I make another 7 years NI contributions before state pension age then I will get the max state pension.  A "cake and eating it" situation

You can volunteer to pay NI even if you are not working to make up a state pension shortfall and that is reckoned to be a good "investment" because it only takes 4 years of increased state pension to recover your additional NI "investment"

Worth checking your pension entitlement at the government "check my pension" website.

 

[Tony S]

You will have to “sign on” as unemployed to get your NI contributions paid by the DWP. Now comes the bad bit, they will try to get you back in to work.

I don’t know about your area. Nottingham has a benefits advisory service, look for one in your area.

 

[binky]

Isn't there a move afoot to get shut of cash  ,    one & two pennies  were mentioned today . 

 Now get rid of these and what happens to inflation of prices - minimum 5%

 

[Evans Electric]

I plan to retire in 5 years when I hit 60. I won't get my state pension until I am 67.  Can I sign on as "unemployed" for those 7 years?  How do you "stop" being self employed?

Phone & ask them Dave ,    AFAIK  we can't sign on as unemployed after two years  SE   .  Or if you can  I don't think you get any benefits. 

You may have to sack some of your gillies  and estate workers .

 

[Tony S]

Sorry I overlooked the self employed bit.

 

[ProDave]

So if you quit as self employed and take up an employed position, how long would you have to carry on in that job before you could sign on as unemployed?

 

[Kurt]

the whole idea of universal credit is that it is very good at managing situations where people work for bits and bobs within a month. employers using RTI to put your PAYE into the system and you get benefits automatically calculated so you can goo from job to job. If you resign from a job its about 6 months before JSA can be claimed. At any rate UC is taking over so best to check how this operates rather than thinking about the old systems and benefits.

 

[Evans Electric]

calculated so you can goo from job to job. I

Am yow from Birmingum Kurt? 

 

[Murdoch]

I plan to retire in 5 years when I hit 60. I won't get my state pension until I am 67.  

If my memory serves  correctly you already have a pension you have income from ................ so you are one of the lucky ones ............ most of us have to go to 67 to get out state pension ............. and by the time I'll be 67 I will have paid NI for over 50 years.

So its 35 years to get the full state pension .............. i'll have paid about 52 years .............. does that mean I'll get 50% more?

 

[ProDave]

If my memory serves  correctly you already have a pension you have income from ................ so you are one of the lucky ones ............ most of us have to go to 67 to get out state pension ............. and by the time I'll be 67 I will have paid NI for over 50 years.

So its 35 years to get the full state pension .............. i'll have paid about 52 years .............. does that mean I'll get 50% more?

I have one very small pension I have been drawing since age 50. My largest DB pensions starts paying at 60, that's when I plan to stop working.  I also have a DC pension now in a drawdown account that I plan to draw between age 60 and 67.

My only "unknown" is how to make up those last 2 years of NI contributions in that time to ensure I get the maximum state pension.  If they treat my pensions as earned income then I will have to pay NI anyway so it's not an issue, but if not I will make 2 years of voluntary contributions.

 

[Tony S]

The DWP will deduct the amount you get from your pension from any benefits you are entitled to.

 

[Murdoch]

My only "unknown" is how to make up those last 2 years of NI contributions in that time to ensure I get the maximum state pension.  If they treat my pensions as earned income then I will have to pay NI anyway so it's not an issue, but if not I will make 2 years of voluntary contributions.

Making up 2 years of contributions will cost you very little ........................