Merging income tax and National Insurance 'will benefit small firms'

Date: 10th March 2011

The joining of income tax and National Insurance for simplification purposes will benefit small businesses.

That is according to the Forum of Private Business (FPB), following the publication of the Office of Tax Simplification's (OTS) latest report.

FPB research projects manager Thomas Parry said the move would have big benefits for the organisation's members.

'We've been asking for it for a number of years now, really because of the fact that it is easy to deal with them both at the same time rather than having to worry about one or the other,' he commented.

'Also, national insurance has been used as a stealth tax on employers in the past, which they do rather resent. It seems a bit daft having to pay tax on employing people.'

The comments follow the publication of the OTS's Small Business Tax Review, which proposes the integration of income tax and national insurance contributions and a reduction in the differential between rates applicable to different incomes.

Posted by Emily Smith