Government sets out next steps for merging income tax and NI

The government has published a paper setting out its next steps for the merging of income tax and national insurance (NI).

The paper summarises the results of the call for evidence, and explains the principles that the government will apply when considering options for reform.

As set out in the paper, the government is establishing a number of technical working groups with stakeholders to identify and explore options for reform.

The priority will be to include a range of employers, including small businesses, to ensure that their perspectives are fully represented.

Subject to the outcome of this work, the government will provide an update on progress, including the timetable for further rounds of detailed and extensive consultation on any proposed options, at the 2012 Budget.

In the 2011 Budget, the government announced plans to consult on options to integrate the operation of income tax and NI. In July, the government issued a call for evidence as a preliminary stage of consultation, which was closed in September.

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