Coalition seeking views on integration of income tax and NICs

Date: 11th July 2011

Small businesses operating in the UK could soon be in greater need of accountancy services after the government stepped up its plans to integrate income tax and National Insurance contributions (NICs).

The coalition is now seeking views on the plans in a bid to provide strong evidence in favour of such a move.

According to the government, by integrating the two, small businesses will be relieved of the burden of having to operate two different systems.

David Gauke, exchequer secretary to the Treasury, explained: "The government is committed to a programme of tax reform that aims to make the UK tax system the most competitive in the G20 for business, and simpler to understand for individual taxpayers.

"Greater integration of income tax and NICs will be a radical reform, but we believe that it has potential to bring real improvements. This is a first step in our consideration of this matter and we would like to hear from businesses and other stakeholders before we move on to further consultation later in the year."

Posted by Thomas Fletcher