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Taxation, work and welfare
Income tax and National Insurance Contributions (NICs) - integration work
05 December 2012
This page provides information relating to the Government’s consultation on options to integrate the operation of income tax and National Insurance contributions (NICs). The Chancellor announced this programme of work at Budget 2011. Since then the Government has issued a call for evidence, set up a number of stakeholder working groups, and commissioned external research into the attitudes of small employers. Further details are set out below.
The call for evidence
The Budget 2011 announcement to consult on this issue was followed by a call for evidence. This was a preliminary stage of consultation, and aimed to build a strong evidence base on the burdens to employers of having to operate two different systems.
The call for evidence closed in September 2011 and full details can be found in our consultation area under:
On 14 November 2011 the Government published a paper summarising the results of the call for evidence, and setting out the principles that the Government will apply when considering options for reform:
- Integrating the operation of income tax and National Insurance contributions: next steps (PDF 531KB)
Stakeholder working groups
The Government has held discussions with a wide range of stakeholders on this issue. In particular, the Government established a number of technical working groups with stakeholders to identify and explore options for reform. These groups included a range of employers, including representatives of small business. These groups each met four times between December 2011 and March 2012, and minutes are available below:
Income tax and NIC working group 1: Meeting minutes
- 29 February 2012 (PDF 91KB)
- 08 February 2012 (PDF 100KB)
- 23 January 2012 (PDF 84KB)
- 15 December 2011 (PDF 117KB)
Income tax and NIC working group 2: Meeting minutes
- 28 February 2012 (PDF 47KB)
- 07 February 2012 (PDF 36KB)
- 14 December 2011 (PDF 120KB)
- 17 January 2012 (PDF 109KB)
Research with small employers
The Government has also commissioned independent research regarding the experience of small employers in dealing with income tax and National Insurance contributions. The results of this research can be found in the report published on the HMRC website;
Next Steps
The detailed and extensive work the Government has done so far shows that this is a large and complex reform. The Government also understands that employers are adjusting to a large number of tax reforms that have already been set out. Autumn Statement 2012 announced that the Government will wait for further progress on planned operational changes to the tax system before formally consulting on integrating the operation of income tax and National Insurance contributions.
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