Deloitte Comments On Plans To Merge Tax And National Insurance Schemes

Mark Groom, Partner in Deloitte's employment taxes group, said: "The Chancellor's announcement that the Government will consult on merging the tax and national insurance schemes is a bold move. We welcome the intention to harmonise employment income, but the key challenge here is around pension contributions. The single person income tax allowance is £8,105 whilst the equivalent allowance for NIC is around £5,500. To lift one allowance up to the other would be costly.

"Perhaps the greater challenge though is that...