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<p>The estimated impact of increasing the rate of employees National Insurance Contributions
(NICs) can be found in HM Revenue and Customs’ (HMRC’s) 2016 publication <em>the Direct
effects of illustrative tax changes, </em>which can be found on the gov.uk website.
The 2018-19 figures are given in the table below:</p><p> </p><table><tbody><tr><td><p><strong>Direct
effects of illustrative changes (£m) </strong></p></td><td><p> </p></td></tr><tr><td><p><strong>National
Insurance Contributions Rates </strong></p></td><td><p><strong>2018-19</strong></p></td></tr><tr><td><p>Change
Class 1 employee main rate by 1 percent point</p></td><td><p>4,100</p></td></tr><tr><td><p>Change
Class 1 employee additional rate by 1 percent point</p></td><td><p>920</p></td></tr><tr><td><p>Change
Class 1 employer rate by 1 percentage point</p></td><td><p>5,200</p></td></tr><tr><td><p>Change
Class 2 rate by £1 per week</p></td><td><p>160</p></td></tr><tr><td><p>Change Class
4 main rate by 1 percentage point</p></td><td><p>340</p></td></tr><tr><td><p>Change
Class 4 additional rate by 1 percentage point</p></td><td><p>210</p></td></tr></tbody></table><p>
</p><p>HMRC currently estimates that the direct effect of imposing NICs charged at
1% on those over State Pension age would raise around £100m in employee NIC receipts
in 2018-19. This is comparable to the table above.</p><p> </p><p>The estimate is based
on the latest Survey of Personal Incomes (2013-14), which has been projected in line
with Budget 2016 economic assumptions from the Office of Budget Responsibility.</p><p>
</p><p> </p>
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