INTEGRATING THE OPERATION OF TAX AND NICS: NEXT STEPS
14 November 2011
The government have published their response to the call for evidence on integrating the operation of tax and NICs published in July of this year.
The government ran a call for evidence which was published in July 2011and responses to this confirmed the appetite for reform from employers, tax and payroll professionals. Responses also showed the need to progress with sufficient care, working alongside stakeholders to identify options that will meet these objectives. Stakeholders have emphasised the need for an open approach, requesting that the government sets out its plans at each stage. The Office of Tax Simplification (OTS) recommended that the government set out a timetable for reform and commence work by the end of 2011. This paper addresses that recommendation and summarises the results of the call for evidence, sets out some objectives and principles for reform and an indicative timetable for consultation and implementation. It also explains some of the challenges that must be overcome if reform is to succeed. There is much work to be done to identify and explore options, and to confirm that the benefits of integration exceed the potential upheaval of getting there. The government are establishing a number of working groups to help them. In this area, as with many aspects of tax reform, a consultative and deliberate approach is desirable. Subject to the outcome of this work, at Budget 2012 the government will provide an update on progress, including the timetable (see below) for further rounds of detailed and extensive consultation on any proposed options.
Your CIPP Policy team will of course be actively involved in the consultation process and will as ever be asking for your valued input.
Table 5.A: Indicative timetable for reform Date
Activity
Winter 2011/12
Working groups including key stakeholders develop detailed proposals on how reform can be achieved High level options identified; timetable for consultation confirmed Stage 1 consultation seeks comments on the high level options for reform Stage 2 consultation refines options and seeks comments on a narrower set of more detailed proposals Detail of reforms decided and announced Legislation drafted, consulted upon and then taken through Parliament Systems changes within government; employers prepare for new system
Budget 2012
Spring 2012
Autumn 2012
Budget 2013
2013-15
2015-17
Around 2017
Reforms come into effect
The Policy team have created a Specialist Interest Group specifically to discuss all information relating to the Integration of Income Tax and NICs.
To become part of this group and receive all relevant information when it is posted, email info@cipp.org.uk with your membership number.
CIPP Policy News Journal
12/04/2013, Page 162 of 362
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