Income Tax and National Insurance

HL Deb 23 March 2004 vol 659 c93WA

Baroness Noakes

asked Her Majesty's Government:

Whether they will adopt the simplification proposals for Pay As You Earn and National Insurance Contributions contained in the British Chamber of Commerce's report A New Tax Horizon: How to Simplify Britain's Payroll Tax System. [HL1875]

Lord McIntosh of Haringey

There are no plans for the structural alignment of income tax and National Insurance. The Inland Revenue, however, continues to work with employer representatives and others to look for opportunities to align the income tax and National Insurance rules at a practical level while having regard to the need to protect the individuals' benefit entitlement.