Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a759404

Tories draw plans to merge income tax & national insurance

by Dylan Lobo on Jun 30, 2014 at 07:41

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 here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

More from us

What others are saying

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet