Plans to merge National Insurance and Income Tax are fantastic news

July 22, 2015 3:05 PM

The Telegraph are asking whether we might see the end of National Insurance in the near future to which we can only say "Yes please"! As we've reiterated countless times National Insurance is simply another tax on earnings and only serves to mislead and confuse people on the subject of the tax burden.

We heard very similar rumours on the subject last year but it was eventually decided that there would be too many problems with the current IT system, so we can only hope that this time the Chancellor actually follows through.

If so it would be the end of a long and sustained campaign from the TPA which has included reports, campaigning and videos:

  • Abolish National Insurance was published in 2011, which sets out exactly how Income Tax and National Insurance could be merged.
  • The Single Income Tax was published in May 2012, which set out a comprehensive reform of the UK tax system through a Single Income Tax and a key component of this was abolishing National Insurance.
  • How to abolish National Insurance was published in November 2012, which went into further detail as to how it could be abolished as part of a move towards a Single Income Tax. The paper set out the detail of how to bring in the reform which ensuring groups such as pensioners were protected from paying any more tax.
  • The Giant Payslip was launched in March 2013, illustrating how the merging National Insurance could simplify people's payslips by making the deductions more transparent.
  • What are you really paying? video was launched in May 2013, to illustrate the fact that National Insurance is really just another form of Income Tax.

And of course, Twitter always plays a part:

TaxPayers' Alliance on Twitter
Do you like this page?

Latest Blogs:

The sugar tax and the public finances

6:00 AM 05, Dec 2016 Harry Fairhead

Working for the taxman

6:00 AM 26, Nov 2016 Harry Fairhead

Further thoughts on the Autumn Statement

4:56 PM 24, Nov 2016 James Price


commented 2015-07-28 09:05:59 +0100 · Flag
The same way that the pensionable age increases for those born after a certain date, rather than for current pensioners. We need a simpler tax system and this is one step towards that, you’re arguing that we should leave complexity in the tax system to protect a certain group and I don’t think that’s right. Knowing that the largest voting block is pensioners you can guarantee that any changes to the current system will protect and insulate pensioners as much as possible already, the same way that cuts to senior welfare haven’t been touched. If it’s only those who can prepare for the change that are affected how is there an issue? Simply because it’s unfair?
commented 2015-07-27 20:01:33 +0100 · Flag
But are you deciding who is near retirement. Pensions can be paid from age 55. No use protecting people just over 60 or 65. I really don’t see it is your perogative to increase tax rates by over 50% on pensions, just to achieve a small increase in transparency for employees on PAYE. You are damaging the income of those who can afford it least. It takes a million pounds to get an income of only £27k pa on an index linked annuity. Your tax change would make increase that figure by well over £100,000 to achieve the same net income. Why do you have to right to (in effect) take £100,000 from some savers?
commented 2015-07-23 10:24:24 +0100 · Flag
We’d prefer if current pensioners and those near retirement have their expectations protected. The only ones who should feel the full repercussions on their pension income would be those who had more than ample time to prepare for the change.
commented 2015-07-22 20:38:05 +0100 · Flag
Good news for who exactly? Not for anyone who has saved hard all their working life to build a pension, only to find a self-appointed lobby group trying to massively increase the tax that would have to be paid on that pension for the rest of their life (as currently NI exempt at any age).