Under a new Conservative plan income tax and national insurance could be merged to help simplify the tax system.
George Osbourne only held back on implementing the reforms recently due to technical issues with the computer system integrations.
However, the 'earnings tax' as it's being called, could have an impact on groups such as pensioners, who may see it as a stealth tax aimed to keep them paying national insurance for longer. NI contributions raise £102b and income tax generated £152b in the last year.
The reforms may take many years to actually come in to play for employers and HMRC, but it's thought a more streamlined tax system will bring cost savings and improved efficiency.
How would a new employment tax system affect your business and cash flow? Comments below please.
Image: Jon Super/AP
George Osbourne only held back on implementing the reforms recently due to technical issues with the computer system integrations.
However, the 'earnings tax' as it's being called, could have an impact on groups such as pensioners, who may see it as a stealth tax aimed to keep them paying national insurance for longer. NI contributions raise £102b and income tax generated £152b in the last year.
The reforms may take many years to actually come in to play for employers and HMRC, but it's thought a more streamlined tax system will bring cost savings and improved efficiency.
How would a new employment tax system affect your business and cash flow? Comments below please.
Image: Jon Super/AP
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