MSE News: Budget 2011: Tax and National Insurance

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

Read the full story:
Budget 2011: Tax and national insurance may be merged

HalloweenJack

hmmm what about those who are retired so no longer pay NI yet are still working?

System

The expert commentary from the IFS, suggests that it seems more likely that this will be an administrative merger to reduce the costs for both employers and HMRC rather than a merger of the NI and Tax deductions as such ?

So, I assume that the changes would not effect who pays or how much. But, since there is to be a long consultation period, it is hardly worth speculating at this stage !

noh

HalloweenJack wrote: »

hmmm what about those who are retired so no longer pay NI yet are still working?

The budget document states on page 19 section 3.5
http://cdn.hm-treasury.gov.uk/2011budget_taxation_overview.pdf

A consultation document will be published later this year setting out the differences in the current income tax and National Insurance systems, and options to address these.
The Government will maintain the contributory principle and reflect this in any changes it brings forward. The Government will not extend NICs to individuals above State Pension age or to other forms of income such as pensions, savings and dividends.