Chancellor urged to merge income tax and NICs

An interim report looking at small business taxation has been published by the Office of Tax Simplification (OTS), calling for a merger between the income tax and national insurance systems.

The provisional recomendations are made with a view of simplifying administrative burdens on SMEs. “The overwhelming conclusion is that genuine and long lasting simplification can only be brought about through major structural changes to the UK tax system,” says the report.

The headline measure proposed by the OTS is to merge income tax with national insurance. “The integration of income tax and national insurance, including reducing the differential between rates applicable to different incomes and legal forms could, for example, remove much of the pressure on the employment and self-employment boundary and should result in the IR35 legislation becoming obsolete.”

Read full article: http://realbusiness.co.uk/finance/chancellor_urged_to_merge_income_tax_and_nics

Free Resources

Related posts:

Rise in NIC is ‘tax on employment’ Rise in NIC is ‘tax on employment’ Chancellor Alistair Darling’s increase in National Insurance Contributions in the Pre-Budget Report is a ‘tax on employment’, according...

£25.6bn employment bill risks job creation and recovery New research from the British Chambers of Commerce (BCC) reveals that upcoming employment regulations and taxes will cost UK businesses a staggering £25.6 billion over...

Red tape and taxes could cost businesses in the UK £25bn Over the next four years, the British Chambers of Commerce has warned that job creation will suffer because of a blizzard of new red tape and...

Umbrella company National Minimum Wage loophole to be closed The Government is to amend legislation to prevent some umbrella companies from exploiting National Minimum Wage rules. Some umbrella companies have been paying their employees...

Employers urged to take workers’ health more seriously Business owners are being called upon to take staff health more seriously, as research has found that 81% of workers fail to exercise the recommended...