Integrating the operation of income tax and National Insurance contributions

On 14 November 2011 the Government published a summary of the results of this call for evidence, within a paper setting out the next steps for consultation. Further details Income tax and National Insurance Contributions section.

The Government has issued a call for evidence today as part of its consideration of the integration of the operation of the income tax and National Insurance contributions systems, announced at Budget 2011.

This is a preliminary stage of consultation, and aims to build a strong evidence base on the burdens to employers of having to operate two different systems. Responses to this call for evidence will inform the Government’s proposals for reform.

The two systems are currently operated separately and the Government believes that greater integration of the two has the potential to remove economic distortions, reduce burdens on business, and improve fairness for individual earners.

David Gauke, Exchequer Secretary to the Treasury, said:

“The Government is committed to a programme of tax reform that aims to make the UK tax system the most competitive in the G20 for business and simpler to understand for individual taxpayers. 

Greater integration of income tax and NICs will be a radical reform but we believe that it has potential to bring real improvements. This is a first step in our consideration of this matter and we would like to hear from businesses and other stakeholders before we move on to further consultation later in the year.”

Representations from all interested parties are invited. Respondents should address any of the questions where they feel they can make a contribution, as well as offering any further comments they may have.