HELP LOW-INCOME WORKERS BY ALIGNING TAX AND NIC THRESHOLDS
December 7 2016.



The government has published a policy paper on aligning the point at which employer and employee National Insurance Contributions (NIC) start to be paid.


It has led the Low Incomes Tax Reform Group (LITRG) to highlight that more could be done to help low-income employees by pursuing a different alignment – that of the primary (employee) threshold for NICs with the point at which income tax starts to be paid, the personal allowance.

Anthony Thomas, chairman of LITRG, says, ‘From 6 April 2017, employees will start to pay NICs on earnings over £157 a week. Annualised, this amounts to £8,164 – a difference of £3,336 when compared to the personal allowance for income tax which will be £11,500.....


For the full story at smallbusiness.co.uk CLICK HERE