Organisations call for merger of Income Tax and National Insurance

20th November 2012 | News

Two leading UK organisations are calling on George Osborne to scrap National Insurance (NI) and integrate it with Income Tax, saying that NI is a burdensome levy.

Indeed, the TaxPayers' Alliance and the Institute of Directors note that now is the time for the Chancellor of the Exchequer to merge the two, saying that the issue hangs over employers and employees alike.

Rory Meakin, head of tax policy at the TaxPayers' Alliance, told City AM that it is time to be upfront about how much people are taxed because of the current lack of clarity.

"The case for radical reform is overwhelming. National insurance is complex, opaque and costly. How many people know how much tax they have to pay?" he noted.

"It can't be healthy for so much smoke and so many mirrors to be put in the way of people seeing their true tax burden."

Earlier this week, the Silk Commission also proposed changes to Income Tax in Wales, saying the local government should have control over the levy.

Posted by Thomas Fletcher