Income tax and National Insurance Contributions (NICs)
30 January 2012
In Budget 2011 the Government announced plans to consult on options to integrate the operation of income tax and National Insurance Contributions (NICs). This page provides information relating to the planned consultation, due to be published later this year.
Details of the announcement can be found at paragraph 1.77 in the Budget document.
Call for evidence
On 11 July 2011 the Government issued a call for evidence on this issue. This was a preliminary stage of consultation, and aimed to build a strong evidence base on the burdens to employers of having to operate two different systems.
This informal consultation closed on 19 September 2011. Full details of the call for evidence can be found in our consultation area under:
Next steps for consultation
On 14 November 2011 the Government published a paper setting out its next steps for consultation. The paper also summarises the results of the call for evidence, and explains the principles that Government will apply when considering options for reform:
As set out in the paper, the Government has established a number of technical working groups with stakeholders to identify and explore options for reform. These groups include a range of employers, including representatives of small business.
Minutes of the working group meetings will be posted on this webpage following each meeting:
Subject to the outcome of this work, at Budget 2012 the Government will provide an update on progress, including the timetable for further rounds of detailed and extensive consultation on any proposed options.
If you would like to receive updates when new information on this topic is published please email incometaxnics.simplification@hmtreasury.gsi.gov.uk or write to:
Income tax and NICs simplification
Personal Tax Team
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ
Tax transparency for individuals
On 14 November 2011 the Government also published a discussion document on how the administration of the personal tax system could be improved to achieve better understanding and make it easier for customers to deal with.
The Government wants to hear views on how increased transparency and accessibility to tax information can build greater awareness and understanding of how the system works. The discussion document is aimed particularly at individual taxpayers, and is available from HMRC’s website:
This was a 12 week consultation to 24 February 2011. Enquiries on this consultation should be addressed to:
HM Revenue and Customs,
PAYE Consultation, Room 1E/09,
100 Parliament Street,
London, SW1A 2BQ
e-mail: PTAdministration.responses@hmrc.gsi.gov.uk
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