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Fri, 16 May 2025
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By Nuclear Transport Solutions

CIPP comment on merging income tax and NI

Chartered Institute of Payroll Professionals (CIPP)

1 min read Partner content

Once again The Treasury is reportedly considering merging income tax and National Insurance. The CIPP would welcome this strategy, indeed back in 2011 when this subject was last seriously considered, over 80% of respondents to a CIPP survey believed that the integration of PAYE and NICs could or may, have the potential to remove economic distortions, reduce burdens on business and improve fairness.

However, the major stumbling block back in 2011 was how to overcome the fundamental differences between what is taxable and what is subject to National Insurance contributions when considering Benefits in Kind. Unless the differences between the tax and NIC treatment of benefits are also addressed it seems likely that yet again this idea will fall at the first hurdle.