Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will make an estimate of the potential annual administrative savings resulting from a decision to combine national insurance and income tax deductions for those on PAYE.

Reliable estimates are not available of the potential annual administrative impact resulting from a decision to combine national insurance and income tax deductions for those on PAYE.

The Office for Tax Simplification (OTS) recently published a report, on 14 November, regarding closer alignment of income tax and National Insurance Contributions (NICs). Whilst the OTS did not produce cost estimates, their report highlighted a number of areas that would impact on the administrative burdens for HM Revenue and Customs as a result of combining deductions for NICs and income tax. This is summarised in paragraph 2.100 of the OTS publication, which is available here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/567491/OTS_report_web_final.pdf.