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nfda“The NFDA is pleased to see that concerns regarding the UK’s current national insurance regime have been raised”, said Sue Robinson, Director of the National Franchised Dealers Association (NFDA) commenting on the possibility to simplify National Insurance Contributions (NICs) calculation and payment.

The OTS (Office of Tax Simplification), an independent tax body within the treasury, has warned the government that the UK’s national regime ‘no longer fit for purpose’. At present, income tax liabilities are based on annual earnings while NICs depend on earnings in a single salary period. The OTS was set to propose the NICs to be calculated on an annual basis, with taxpayers having a NIC ‘code’ like their current tax code.

Robinson continued, “Merging the two taxes would prevent anomalies considering that taxpayers would pay the same amount for their NICs regardless of how they work and when they are paid.

“Previously the NFDA has expressed concerns regarding current issues such as the new pension and living wage and how these might incur costs to businesses.

“In this case, the NFDA believes that the simplification would bring several benefits especially in a long term perspective.”


Posted by Sue Robinson on 18/03/2016