Yesterday, the Office of Tax Simplification (OTS) released its report detailing how the National Insurance Contribution (NIC) regime can be changed so as to ensure connectivity between an employees annual earnings and the NIC that is actually paid. This is welcomed and it is a hope that the forthcoming Autumn Statement will reflect a timetable for implementation of these recommendations.

As the report highlights, this change would see redistribution of NIC, from those on very low earnings, to those earning above even the living wage.  Such a move would finally achieve the goal that a high starting point for Income Tax would also take tens of thousands out of NICs too.