Consultations and Proposals

Aligning Income Tax and National Insurance

In the 2006 Budget, the Government announced that it would review the case for aligning income tax and national insurance contributions (NICs), with the aim of reducing administrative burdens on employers and improving outcomes for those on lower incomes. The report published today sets out the conclusions of the review, and includes detailed analysis of the costs and benefits of moving to an annual and cumulative NIC system. It also sets out action that HM Revenue & Customs will take to further reduce administrative burdens.

The PDF document can be accessed here:

http://www.hm-treasury.gov.uk/media/B/B/pbr_csr07_incometax713.pdf