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combine National Insurance with income tax

Comment 29th July 2010

There is massive duplication of effort and cost in the administration and collection of income tax and National Insurance contributions from employed workers. The link between National Insurance contributions and benefits for employed workers is getting increasingly tenuous as years go by. For example, Statutory Sick Pay and Statutory Maternity Pay don’t depend on National Insurance contributions; State Pensions are paid out of general taxation, not the National Insurance fund.

Why does this matter?

It would save money at the Revenue’s National Insurance office and at the payroll sections of employers large and small to combine the National Insurance and income tax systems.

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