Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Tories draw plans to merge income tax & national insurance

Tories draw plans to merge income tax & national insurance

Income tax and national insurance will be merged in what will be a central element of the Conservatives' election manifesto, according to reports.

The Times reported that chancellor George Osborne (pictured) came ‘within a whisker’ of announcing the plan in the Budget and is looking at the policy again ahead of next year’s general election.

Under the merger basic rate income tax payers would pay 32%, compared to 20% income tax today, and higher rate taxpayers would pay 52%, up from 40%.

The paper said the party was actively considering the move, but had concerns that merging two computer systems could create an IT disaster.

The move would simplify the tax system, but there are also fears that the party would appear to be increasing taxes, The Times reported.

Income tax generated £152 billion for the chancellor last year, while national insurance raised £104.5 billion.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter