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Well what's the justification for the tax break? If it's "well, self-employed people are important so we should just throw money at them" then that's not a very

• BillFranklin 9y ago
  That's a good question. Sorry that I didn't answer it in my original comment. Self-employment comes with personal financial risk, but the reason for their lower national insurance contributions (NIC) is to do with pensions. The UK chancellor this year: > Historically, the differences in NICs between those in employment and the self-employed reflected differences in state pensions and contributory welfare benefits. Self-employed people are more unlikely to have a pension, and the state pension is about £7,000 per year. In contrast to this, people who are employed have access to a workplace pension, where an employer must contribute to the employee's pension. The average teacher will have a workplace pension of £25,000 per year. So, the idea behind the reduced NIC for self-employed people is that they'll put the money into their savings / personal pension. If you're self-employed and adding 3% of your income into your pension each year, then the 3% savings on NIC would be the government enabling you (as your own employer) to 'match' your own annual pension contribution.
• IanCal 9y ago
  You don't get covered for some of the same things, I think that might be it. Statutory sick pay, for example.