The rate of Class 2 National Insurance contributions (NICs) for share fishermen will be 2.65 pounds per week reduced from 7.20 pounds per week with effect from 6 April, the Paymaster General Dawn Primarolo announced today.
1. Share fishermen pay a special rate of Class 2 NICs. The rate from 6 April 2000 will be reduced from the current weekly rate of 7.20 pounds to a revised rate of 2.65 pounds per week.
2. The rates in Great Britain and Northern Ireland will be set by statutory instrument which will amend regulation 98 of the Social Security (Contributions) Regulations 1979 in Great Britain and regulation 96 of the Social Security (Contributions) Regulations (Northern Ireland) 1979 in Northern Ireland.
NOTES FOR EDITORS
Share fishermen are treated as being self-employed by the Social Security (Contributions) Regulations 1979 and their Northern Ireland equivalent.
They do not pay the standard rate of Class 2 NICs generally payable by the self-employed. Instead they pay a special rate which takes into account the fact that, in addition to state retirement pension, widow’s benefits, Incapacity Benefit and Maternity Allowance, they are entitled to claim Jobseeker’s Allowance which is not available to those who pay standard rate Class 2 NICs.
Share fishermen may also pay Class 4 NICs on the taxable profits of their business if these exceed a certain level.
Report argues that the government must change the way it makes tax and budget decisions
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC