Treasury in call for evidence on income tax/NIC link

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The Government today issued a call for evidence as part of considerations to simplify the way it deals with income tax and National Insurance contributions (NICs).

Announced in Budget 2011, the Treasury believes greater integration of the two systems will benefit empoyers and taxpayers as well as reduce the administrative burden on HMRC. For decades, the government has operated income tax and NICs as two fundamentally different systems with different periods and bases of charge. The concept of merging income tax and NI to create a basic tax of 32% was recommended by the Office of Tax Simplification (OTS) ahead of this year's Budget. "We believe that greater integration of the two systems has the potential to remove economic distortions, reduc...

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