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09 Mar 2011
A MERGER of income tax and NI should be the focus for the Treasury, rather than continually make piecemeal changes to the tax system, a review by the Office of Tax simplification is expected to recommend.
The second part of the Office of Tax Simplification's review of the tax system, due out on Thursday, is expected to recommend focus on the income tax/NI merger, rather than wholesale changes to controversial freelance tax rule IR35.
Further reading
A merger of the two taxes could deal with many of the issues surrounding individuals' employment status, reports the Telegraph.
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Visitor comments Add your comment
long overdue
National Insurance and PAYE income tax have run in parallel for decades.It is a pretence that they are separate taxes. It would clarify the true tax burden for the average employee immediately if the two taxes were merged. This simplifying measure was also suggested by one small political party before the last election.
Posted by: Andrew Aiken, 09 Mar 2011 | 15:11
The end of employment status disputes, too?
At last, a simplification proposal that could actually reduce burdens on taxpayers as opposed to the abolition of a rarely used relief with little benefit beyond removing a couple of paragraphs from the many volumes of our tax code. If this proposal could be implemented so as substantially to remove the tax benefit of being self employed rather than employed, we would also be relieved of the burden of trying to make sense of the steady stream of capricious and often illogical decisions of our courts and tribunals on this issue.
Posted by: Hugh Faulkner, 09 Mar 2011 | 17:01
NI/INCOME TAX MERGER-UNFAIR TO PENSIONERS
pensioners do not pay ni-how would hmrc get round this-or is it a tax raising measure?
Posted by: RICHARD GRAY, 10 Mar 2011 | 14:09