National insurance and income tax merger could get UK support

Merging income tax and national insurance could be popular (Source: AFP/Getty Images)
Merging income tax and national insurance could be supported by the public, according to work announced today by PwC.

The firm arranged for a jury of 22 representative members of the public to discuss taxation for two days, and the group expressed support for the idea of merging the two taxes on income.

The panel also suggested that VAT could be made more simple, so that all items were either zero rated or taxed at the full 20 per cent.

“We’ll be looking at the practicalities of the jury’s recommendations, but what’s loud and clear is the focus on simplicity and transparency,” said PwC’s head of tax, Kevin Nicholson.

The focus group also indicated support for higher bands of council tax, along with the abolition of inheritance tax.

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