How to fix the fuss over National Insurance contributions

The solution to all the fuss over National Insurance contributions for the self-employed is simple, says Merryn Somerset Webb. We all pay the same tax regardless of how we work.

The fuss about National Insurance (NI) is getting silly. In his last spring Budget, Philip Hammond announced the beginning of an attempt to equalise the tax treatment of the employed and the self-employed with a rise in National Insurance contributions for the latter.

It isn't going to be that big a deal for the low paid (about £20 a year for someone on £17,000) but it will be something of a hit for those on higher rates (£620 for someone earning over £51,000). And that rather than going for the low paid is the point of the whole thing.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.