Take part in our new Family Business Survey and have your say! Click here
Believe it or not our Government has started a formal consultation process to consider the merging of National Insurance and Income Tax into a composite rate. Whether this remains a paper exercise or actually results in a simplification of our tax system is anyone's best guess.
There is clearly a great deal of uncertainty around how integrating the operation of income tax and the NIC system would work in practice. Indeed, the Chancellor's announcement acknowledged that 'this huge task will therefore require a great deal of consultation and take a number of years to complete.'
On 11 July 2011 HM Treasury launched a call for evidence which closed on 19 September 2011. Topics that were discussed refer to employers' provision of evidence regarding the administrative burden of operating the two different systems. The majority of the questions raised focused on the cost and burdens faced by employers and payroll professionals in operating the two systems, although there were some more general questions at the start, asking for feedback on the Government’s objectives of removing distortions, reducing burdens on businesses and improving fairness.
This forms part of the preliminary consultation stages and responses to this call will be added to the details of the Government's proposals for change. A full consultation on these will be issued in autumn 2011.
Disclaimer – Please note: The ideas shared with you in this article are intended to inform rather than advise. Taxpayers’ circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
If you like this article and would like our FREE updates sent straight to your inbox then subscribe to our monthly newsletterSubscribe
All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.
Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW