CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. UK Gov't Urged To Equalize Labor Tax Exempt Thresholds

UK Gov't Urged To Equalize Labor Tax Exempt Thresholds

by Jason Gorringe, Tax-News.com, London

13 December 2016


The UK Government should raise the exempt threshold for Class 1 National Insurance contributions (social security) into line with the personal income tax exempt threshold to simplify the regime, a taxpayer charity has said.

The UK Government has announced that the threshold for paying Class 1 National Insurance contributions will be set at the same level of GBP157 (USD199) a week for employers and staff from April 2017. The Low Income Tax Reform Group has instead called for the employee threshold of GBP8,164 a year to be brought into line with the personal allowance for income tax of GBP11,500 to help lower earners.

"Such a move would help many more people, mainly women, who work part-time in schools, supermarkets, catering, and so forth to support the family income while raising the children and who receive no benefit from increases in the personal allowance; but they may be subject to Class 1 Primary NIC," said LITRG Chairman Anthony Thomas.

"As many such women might otherwise be entitled to National Insurance Credits if they did not work, payment of NICs is effectively an additional tax charge," he said.

TAGS: Insurance | tax | United Kingdom | social security | individual income tax | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »