BCC advocates end to national insurance
National insurance should be scrapped and combined with the PAYE system, according to the British Chamber of Commerce.
National insurance should be scrapped and combined with the PAYE system, according to the British Chamber of Commerce.
b>Link: Pressure groups demand NI overhaul
The NI system, introduced in 1946 as a contributory welfare fund, adds ‘enormously’ to an already complex tax system, yet is merely another tax, the body has claimed.
David Frost, director general of the BCC, said: ‘Business is being held back by administrative costs and burdens. If we are to compete globally and pay for the chancellor’s ambitious public spending commitments we must have simplification of the tax and regulatory system.
‘Merging employee NI and income tax would be a very positive start. Tax simplification is just the windfall saving the chancellor needs and British businesses will thank him for it.’
The BCC is demanding a three-stage approach to eventually ‘amalgamate employee’s NI contributions into income tax’. The first would put NI on the same earnings base as PAYE and calculate it on an annual basis. Next, the chamber wants to simplify the NI tables, by removing unnecessary bands and exemptions. Lastly, the body seeks to merge employees’ contributions into income tax.
Employers have long complained about the cost of managing NI contributions.
However, merging it with income tax would carry political risks for the government. Income tax rates would go through a steep rise, an outcome Gordon Brown has pledged to avoid. The government would also have to admit that contributions do not go to social services and health, contrary to public perception.
The numbers you crunch tell a story. Your expertis...
20yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article