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Much Ado About Nothing?

 
David Reilly of Grant Thornton UK LLP considers the Government's latest proposals concerning the alignment of income tax and National Insurance contributions
 
On 9 October 2007 the Government published a paper entitled Income tax and National Insurance alignment: an evidence-based assessment. This paper was the result of a review announced in paragraph 5.87 of A Strong and Strengthening Economy: Investing in Britain's future from Budget 2006:
 
'There is a case for building on previous work to align for low paid workers income tax and National Insurance systems in order to improve outcomes for the low paid and to reduce burdens on employers especially smaller employers. While recognising that aligning two very different systems with very different purposes presents difficult challenges the Government will conduct a review...

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