How can we more closely align income tax and NIC, and why is this important?
In 2015 we published a paper on improving the future UK tax system, which outlined four options for managing the future of NIC: merge, manage, de-merge and make do. The Office of Tax Simplification (OTS) has since produced detailed proposals which consider options for reform similar to our manage option.
Our latest report highlights the key areas of the OTS proposals, identifying benefits and issues with the suggested approaches and summarising what taxpayers and employers can expect.
Our 2015 report explored exactly where taxpayers’ national insurance and income tax contributions go, while busting some common myths about how these taxes are spent by the Government.
The report provided detailed analysis of the tax systems for every taxpayer and presented four options for policymakers to manage NIC:
ICAEW tax expert and report author Peter Allen explains the past, present and future options for national insurance contributions.
Send us your comments on our latest report via our feedback form, where you can also request a print copy of the report.