Businesses asked for views on tax and NI merger

The government is asking businesses for their views on integrating the income tax and national insurance contributions (NIC) systems.

Its call to evidence, a preliminary consultation launched in July and continuing until 19 September, aims to build a clear picture of how employers are affected by having to operate two different systems. Responses received will help to shape the government’s proposals for reform, on which it will consult in the autumn.

The government believes that bringing together the two systems – currently operated entirely separately – can reduce the burden on business and improve fairness for individual earners.

David Gauke, Exchequer Secretary to the Treasury, said: “Greater integration of income tax and NICs will be a radical reform, but we believe that it has potential to bring real improvements. We would like to hear from businesses and other stakeholders before we move on to further consultation later in the year.”

Topics the government is seeking views on include how much staff time and other resources are required to manage the existing income tax and national insurance systems, which aspects of the process currently work well and how often problems are encountered when calculating payments.

LINK: Consultation on integrating income tax and national insurance