Mar
15
2011
Merging income tax and national insurance 'would make matters easier'
Posted by Daniel Frost
A call by the Office of Tax Simplification (OTS) to merge national insurance and income tax has received backing by one source, company umbrella contractors may be interested to hear.
Thomas Parry, research projects manager at the Forum of Private Business, has applauded the proposal.
The OTS called for the change in its Small Business Tax Review, as a way of lowering the impact that the controversial IR35 legislation has on contractors, including those working with umbrella companies.
Mr Parry noted: "We've been asking for it for a number of years now, really because of the fact that it is easy to deal with them both at the same time rather than having to worry about one or the other."
However, Ann Swain, chief executive of the Association of Professional Staffing Companies, has a different view on this proposal.
She recently explained that, in her opinion, merging income tax and national insurance would in fact "erode the tax advantages of contracting".
A call by the Office of Tax Simplification (OTS) to merge national insurance and income tax has received backing by one source, company umbrella contractors may be interested to hear.
Thomas Parry, research projects manager at the Forum of Private Business, has applauded the proposal.
The OTS called for the change in its Small Business Tax Review, as a way of lowering the impact that the controversial IR35 legislation has on contractors, including those working with umbrella companies.
Mr Parry noted: "We've been asking for it for a number of years now, really because of the fact that it is easy to deal with them both at the same time rather than having to worry about one or the other."
However, Ann Swain, chief executive of the Association of Professional Staffing Companies, has a different view on this proposal.
She recently explained that, in her opinion, merging income tax and national insurance would in fact "erode the tax advantages of contracting".