Ahead of next week’s Budget, Conservative MP for Ipswich, Ben Gummer has proposed to the Chancellor that he change the name of NIC to “Earnings Tax”. Furthermore, it is something that Gideon (George Osborne) finds appealing.
If the Chancellor is to run with this idea it could herald the beginning of the integration of NIC and income tax, as recommended by the Office of Tax Simplification in 2010 but spoken of in the corridors of Whitehall for decades beforehand. Allister Heath, editor of City AM, is also an advocate of this concept but wants Mr Osborne to send out a clear signal of commitment to this process by providing a timetable detailing how the two taxes would be united.
In a recent article written for the Daily Telegraph, Mr Heath set out a number of other policies he would like to see the Chancellor implement on 19th March:
The PCG have a different agenda and want Mr Osborne to ensure that contractors are specifically excluded from the proposed revision to the agency legislation designed to tackle false self-employment. They have also urged Gideon to delay implementing the proposals to give businesses time to come to terms with the “very serious potential economic impacts of these changes.” This despite HMRC’s recent guidance indicating that PSC’s only have IR35 to worry about.
What we can probably expect next week is a Budget short of radical tax cuts with the country’s deficit remaining high and the Tory’s coalition partners putting the brakes on in certain areas.