Consultation on tax and NI alignment launchedWednesday, December 9th, 2015
The Office of Tax Simplification (OTS) has launched a consultation into the closer alignment of income tax and national insurance contributions.
The OTS is gathering evidence of where the complexities lie in the current differences between income tax and NICs. For example:
- The definition of income,
- Employed or self-employed,
- Treatment of expenses and benefits
- Income tax is calculated on an annual income basis whereasNI is calculated on an earnings period basis.
The consultation takes the form of a survey, there being two:
- A short survey for individuals, and
- A longer survey for agents, employers and payroll providers
The consultation closes on 31st of December which is a relatively short period and we recommend reading and submitting a response – it is all relevant to you.