Fairer National Insurance for freelancers

A freelance writer’s is petitioning the governement to make the National Insurance system fairer for self-employed workers. Journalist and copywriter Anne Wollenberg says the NI system as it stands “is stacked against freelancers”. She points out that: “An employee earning millions loses their job after 2 years and gets 6 months’ contributory (non-means-tested) JSA. A freelancer signs on as their business fails. They can’t get contributory JSA and must apply for means-tested benefit, which they probably won’t get if their spouse or partner works.”

She also highlights the problem of freelancers being forced onto PAYE for casual work and having to pay Class 1 NI even though these sporadic payments don’t count but can’t be reclaimed.

She is calling for:

· Freelance NI to count towards contributory JSA or Class 3 top-ups to be eligible

· Better explanation of current rules to people registering as self-employed

· Those paying Class 1 NI for 2 years to retain eligibility for contributory JSA if they then go freelance

· A higher threshold for freelancers before paying Class 1 or a Class 1 exemption system