A future Conservative government may merge National Insurance with Income Tax, in a move designed to ‘simplify’ the UK’s taxation system, the Independent newspaper has reported today (30 June 2014).
The move would see basic level taxpayers parting with over 32% of their total earnings, while higher earners would be asked to pay up to as much as 52%. Employer National Insurance contributions would not be affected by the change.
According to the Independent, Chancellor George Osborne considered introducing such a system in this years budget but later decided against the move, due to risks involved in integrating the two different computer systems.
However, the plan is now being considered by party chiefs for inclusion in the Conservative Party’s 2015 general election manifesto. It is believed that the new tax could be called an “earnings tax”.
A source close to the party told…
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