The chancellor has written a response to the Office of Tax Simplification (OTS) on the alignment of income tax and National Insurance.
This follows the OTS' further review: alignment of income tax and NIC published earlier this month.
Action has already been taken on some proposals, with announcements in the Autumn statement 2016 to:
- Align employers and employees thresholds.
- Align time limits and debt recovery processes for NIC with other taxes.
- Abolish class 2 NIC.
There is also a call for evidence on the tax treatment of non-reimbursed expenses.
HMRC will give consideration to:
- Whether any future changes to NIC and income tax can be aligned.
- The options set out for reform of employer NIC by introducing an employer payroll levy.
The chancellor does not intend to move the calculation of NIC to an annual, cumulative and aggregated basis at this time.
For further developments on this issue see our tax update and rolling planner.
Links
