Call a tax a tax demands MP in NI rename row
THE CONSERVATIVE MP calling for an end to National Insurance payments has won the backing of business leaders at the Institute of Directors.
Backbench MP Ben Gummer will set out his argument to rename National Insurance the “Earnings Tax” in parliament today, and has admitted that this is the first step in a plan to remove NI altogether.
“If it’s a tax we should call it a tax,” Gummer said. “I want to see National Insurance and Income Tax merged, as they are essentially the same thing.”
Stephen Herring, head of tax at the IoD, said people are being mislead. “National insurance is not, as many people think, set aside for their pensions. We thoroughly support the proposal to rename the tax, to present a clearer picture to workers of the tax they pay out of their wages,” he said.
A Treasury source said it was “an interesting idea” and hinted that changing the name of NI could be a consideration for the chancellor’s budget.