The idea of merging income tax and national insurance would get the broad support of the public in the UK, according to work carried out by PwC.
The firm convened a panel of 22 representative members of the British public to discuss taxation. The result was that that they supported the idea of integrating income tax and national insurance and suggested further recommendations for reforming the UK tax system. These are going to be presented to the government in July.
The panel, which spent two days debating the purpose of tax, who should pay it and how it should be levied, also suggested that VAT should be made simpler – with all essentials VAT free but a 20% rate for everything else. They also suggested that inheritance tax be scrapped in favour of new and higher bands for council tax and stamp duty land tax.
“The panel has made some interesting observations on what to do, but the clear message from them is ‘simplicity’” says Ben Dunn, Finance Director at JSA Services. ‘This is a message that we hear time and time again from our clients who don’t understand why the tax system is so complex. We would support measures that help to bring greater transparency and clarity to the UK tax system”.