Employee benefit consultants (EBCs) will face a variety of problems if the government merges income tax and national insurance (NI), experts say.
George Osborne announced in his budget speech today the government will this year consult on merging the two systems to create 32% basic rate tax. The Chancellor claims this will make administration simpler for employers and cheaper for taxpayers. However, advisers and EBCs foresee problems with merging the two. "The effects of a merger of income tax and national insurance will create a bigger upheaval than the A-Day simplification changes," says Robin Hames, head of technical at Bluefin. "For more than a decade it seems like the merger of PAYE and NI has been the holy grail of ...
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