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Is this the end of National Insurance?

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    Is this the end of National Insurance?

    George Osborne, the Chancellor, is considering historic plans to merge Income Tax with National Insurance

    Income tax and National Insurance could be merged under one of the biggest shake-ups of the tax system for decades.

    George Osborne, the Chancellor, has commissioned a study into the reforms which could lead to the creation of a single "earnings tax".

    The system of national insurance contributions dates back to 1911 when it was established to help working people insure against illness and unemployment.

    It was expanded after the Second World War to help fund the health service and wider social security programmes, and is now charged at 12p for every pound of income.

    It has developed in parallel with income tax, but senior Conservatives believe that the distinction has become increasingly academic as general taxation also funds the NHS.

    Mr Osborne considered merging the two taxes in the final Budget of the last Parliament but decided not to amid concerns about problems linking the two IT systems.

    Source: Is this the end of National Insurance? - Telegraph

    AtW's comment - so that would be a good way to increase tax on dividends because income tax rates would go up due to merge with NICs


    #2
    What about employer's NI?
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    Comment


      #3
      Originally posted by d000hg View Post
      What about employer's NI?
      He will never merge it with employee NICs because combined NICs+income tax would show how heavy taxation really is on everybody.

      Might as well move to Russia, flat rate 9% tax on dividends, 13% flat income tax rate, same rate for CGT purposes, plus all you can rape/murder/loot in ze "hybrid" army

      Heil Puten!!!

      Comment


        #4
        Originally posted by AtW View Post
        Mr Osborne considered merging the two taxes in the final Budget of the last Parliament but decided not to amid concerns about problems linking the two IT systems.
        Kerching!
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        Comment


          #5
          Sounds bad for greedy contractors (like me) who try to avoid paying any NI...
          Originally posted by MaryPoppins
          I'd still not breastfeed a nazi
          Originally posted by vetran
          Urine is quite nourishing

          Comment


            #6
            Originally posted by d000hg View Post
            Sounds bad for greedy contractors (like me) who try to avoid paying any NI...
            Don't you worry, the Conservative Govt is going to stand right behind you ...

            Comment


              #7
              Originally posted by AtW View Post
              He will never merge it with employee NICs because combined NICs+income tax would show how heavy taxation really is on everybody!!!
              I think that is a great reason to do it. Remember how Gordon Brown increased NIC twice mainly because people did not associate it with tax.

              Time we simplified taxes.

              NIC is a tax so I cannot see why the elderly should be exempt, however a simple solution would be return to aged related tax allowances so at least those on lower incomes would not be hit.
              "The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." Cicero

              Comment


                #8
                Originally posted by AtW View Post
                Don't you worry, the Conservative Govt is going to stand right behind you ...
                with their hands in your pocket.
                Always forgive your enemies; nothing annoys them so much.

                Comment


                  #9
                  Originally posted by Waldorf View Post
                  I think that is a great reason to do it. Remember how Gordon Brown increased NIC twice mainly because people did not associate it with tax.
                  And you think this lot does not want to tax?

                  They are all in it together.

                  He will never scrap Employer NICs - they bring in too much, and he will never merge them with Employee NICs because that would show real level of taxation that no party would be prepared to cut.

                  Comment


                    #10
                    Originally posted by AtW View Post
                    George Osborne, the Chancellor, is considering historic plans to merge Income Tax with National Insurance

                    Income tax and National Insurance could be merged under one of the biggest shake-ups of the tax system for decades.

                    George Osborne, the Chancellor, has commissioned a study into the reforms which could lead to the creation of a single "earnings tax".

                    The system of national insurance contributions dates back to 1911 when it was established to help working people insure against illness and unemployment.

                    It was expanded after the Second World War to help fund the health service and wider social security programmes, and is now charged at 12p for every pound of income.

                    It has developed in parallel with income tax, but senior Conservatives believe that the distinction has become increasingly academic as general taxation also funds the NHS.

                    Mr Osborne considered merging the two taxes in the final Budget of the last Parliament but decided not to amid concerns about problems linking the two IT systems.

                    Source: Is this the end of National Insurance? - Telegraph

                    AtW's comment - so that would be a good way to increase tax on dividends because income tax rates would go up due to merge with NICs

                    As I said

                    Comment

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