Merging Income Tax and National Insurance Contributions – Simples?

“I am announcing today that the Government will consult on merging the operation of National Insurance and Income Tax.”

The word ‘consultation’ in the Budget drew the longest, loudest sigh from me. Some commentators had hinted that Osborne was considering merging Income Tax and National Insurance Contributions (NICs), which would be a fantastic move towards simplifying our tax system.  Of all the pre-Budget leaks, this was one that sounded truly exciting and innovative.  But, alas, this idea is only in infancy and all that was promised was a consultation.  Of course, the Chancellor can’t rush into this. He has to get this right if it goes ahead, so a consultation is probably prudent. But this also gives him the option not to deliver at the end of it all. We didn’t need a final scheme, but the hype suggested something a little more concrete than having a think about the issue.