OTS report: closer alignment of income tax and national insurance: a further review

OTS report: closer alignment of income tax and national

The OTS have published an updated report on the closer alignment of income tax and National Insurance Contributions.


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On 14 November 2016 The Office of Tax Simplification (OTS) published its further review on the closer alignment of income tax and national insurance, reaffirming its call for this system to be reformed to make it fit for the future. The report builds upon the findings of their previous review and looks in greater detail at the two areas stated in the Terms of Reference (Phase 2), which was published in May 2016.

Specifically, these areas are:

  • A review of the impact of moving employee NICs to an annual, cumulative and aggregated basis (ACA) similar to the collection of income tax under the PAYE system. NICs are currently calculated on a pay period basis; and,
  • A review focused on the reform of employer NICs to a payroll based charge.

The report sets out a five year timetable for implementation and notes that this timeframe could align with the implementation of Making Tax Digital.

For further information please refer to our detailed article, which focuses on the two key issues discussed in the report.


For further information please contact :

Seamus Murphy

Patrick Martin

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