Society of Authors Challenging Five Fold Rise in NI Payments For Low Paid Authors

In April 2019 National Insurance rules are set for a shakeup, as a result, authors earning less than £6205 a year could see their National Insurance Contributions (NICs) bill increase fivefold.

Writers, illustrators and translators earning less than £6205 per year can currently make voluntary payments of £2.95 in the form of Class 2 National Insurance Contributions (NICs).  From April 2019 self-employed workers earning below £6205 will still be able to make voluntary contributions towards their state pension – but only in the form of Class 3 NICs, which are £14.65 a week.

This adds up to £761.80 per year, a fivefold increase on the Class 2 annual contribution of £153.40. If you earn below £6,205, this will mean a minimum contribution of 12.3% of your income.

Talking about the changes in a recent blog post the Society of Authors (SoA) said "The Government claims that relatively few people will end up making this payment, as they will gain qualifying years for contributory benefits through other means, such as through additional employment or benefits. However, the Government’s own analysis suggests that 100,000 self-employed workers earning less than £6205 a year will end up making these payments of £14.65 a week (2% of a workforce of 5 million).

We are concerned that this change will disproportionately affect authors and other creators who are already struggling financially. Many have an author income below £6205, and some have no other sources of income."

The Society of Authors is busy petitioning HMRC on behalf of authors and illustrators and they met last week to discuss the matter.  As a result of that meeting it has been agreed that the SoAs will submit further evidence on the impact of these proposed changes.  

If you are below state pension age and earn below £6205 per annum from your writing, and if you have no other sources of income, you can contact the SoAs with your testimony by email at tgallagher@societyofauthors.org but do it by Monday 23 April.