1 General news
1.1 OTS to report on closer alignment of income tax and
NIC
The Government has requested the Office of Tax Simplification
(OTS) to undertake a study on the closer alignment of income tax
and National Insurance contributions. The OTS will report before
the Budget next year.
This requested report has been trailed in the national press as
a potential merger of the two systems, which would be a radical and
exciting development. This does, however, seem to overstate the
intention behind the exercise.
The OTS will be reviewing the costs and benefits of closer
alignment, looking at the case for change, including the burdens
and distortions of the present system. It is also specifically
looking at bringing the two systems closer together in relation to
earned income for employees and employer and the self-employed.
This could have very significant implications, particularly for the
self-employed, including partners in partnerships and members of
LLPs,
