Only an average of 123,000 people per year have made Class 3 National Insurance Contributions (NICs) which allow them to fill historic gaps in their NI records and receive a higher state pension over the last five years.

A proposed rise in National Insurance levels for the self-employed has been axed – just a week after it was announced in the Budget.

The Chancellor today labelled the rules around National Insurance contributions for the self-employed as unjustified and announced plans to change them.

The biggest change to the personal taxation system in a generation could be coming in next week’s Budget if proposals to reform income tax are adopted, an analyst believes.