Consultation on integrating income tax and national insurance

Following a call for evidence carried out in 2011, the Government has announced that it will consult in 2012 on integrating the operation of income tax and national insurance contributions. 

The objectives set out by the Government of an integration of income tax and national insurance are "reducing burdens on employers, removing economic distortions and improving transparency, achieving fairer outcomes for individuals, and cutting government’s administrative costs". The Government will consult in two stages during 2012. The first consultation stage will take place in spring and will seek views on the high-level options for reform that will be confimed in the 2012 budget. The second stage will take place in autumn 2012 and will consult on a more detailed set of proposals. The Government anticipates that the proposals will be announced in the 2013 budget and implemented around 2017. 

Also 

The PAYE system is explained in the pay and benefits chapter of the XpertHR employment law manual.