Big Question: Should Income Tax and NI merge into one levy?
Finance directors put their weight behind calls for simplification of the UK’s employment taxes this week with almost two thirds supporting the idea of merging income tax with national insurance.
The findings followed the end of a one-year consultation on the idea by tax officials.
An emphatic 64% of FDs from small and medium-sized companies voted to combine the two systems, with their demands focusing on making the system more transparent and reducing administration.
‘It all goes into one pot so they may as well just take one levy,’ said Julian Aldridge, finance director at Northampton Chamber of Commerce.
‘National Insurance is treated as a tax and I do not see any reason why it should not be seen as such,’ said another FD.
Less than a third of FDs said the system should stay as it is, while 10% remained undecided.
‘The way the NHS is going it will all probably go to a private scheme.
By maintaining NIC separately at least you can see where it is going,’ said Mona Curtis, FD at Datamex Computer Services.
Support grows on tax move www.accountancyage.com/Tax/1110256.