There is "no overriding reason" why a merger of national insurance (NI) and income tax should not go ahead, an actuary says.
The idea of merging income tax and NI to create a basic tax of 32% has been recommended by the Office of Tax Simplification (OTS), and speculation is growing as to whether it will be mentioned in tomorrow's Budget. Malcolm McLean, consultant at actuarial firm Barnett Waddingham, says all signs point to the policy being adopted. "The reasons why it has not happened previously are probably more political than anything," says McLean, pictured. "There are certainly a few obstacles to overcome and any changes may have to be phased in over the longer term and not immediately." Ros Alt...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes