View more on these topics

Out from the long grass? An IT and NI merger

Those with a long memory will recall that at the start of the last parliamentary term George Osborne announced his intention to merge income tax (IT) and national insurance (NI).  Headline grabbing as the initiative was, the reality of the complexities, challenges and costs of such a move resulted in this idea being kicked into the political long grass.

Roll forward five years, and the idea is back on the radar again, as can be seen from this report.

So is this is any more likely to happen during the current parliamentary term?

This remains a hugely challenging project, but at least one of the principal hurdles to any such merger is already in the process of being removed with the consultation on changes to the tax relief system for pensions already under way. Changing this part of the taxation code could make it much easier to make a reality of the more ambitious project of an IT and NI merger.

It’s also worth highlighting that such a union would likely remove the savings for employer and employee inherent in salary sacrifice offerings. As we already know from the summer Budget, this is an area that is being closely monitored by HM Treasury at present as well.

So the bottom line is that this time the merger could be a genuine possibility. But before employers reach for the valium to calm their increasingly strained nerves, it is worth highlighting that such a change is only likely to occur once the pensions tax relief situation is fully resolved (a process that must surely take a minimum of two to three years). Logically, therefore, change in this space might well fall into the next parliamentary term (2020–25).

We shall all watch this one with interest.


Woodford Neil WIM

Woodford and GARS funds lead investor rush to defensive assets

Investors having been buying increasingly defensive funds, with multi-asset funds seeing a surge of interest in June, according to FundsNetwork. Data from the platform shows that demand for multi-asset funds continued to grow last month, with Targeted Absolute Returns and the three Mixed Investment sectors being the third, fourth, fifth and sixth most popular sectors […]


Passive price war hots up as competition rises

The passive fund management industry is seeing a new wave of cost cuts as competitiveness drives a price war across the market. This week has seen several price cuts on a number passive tracker funds from leading providers, including BlackRock and Vanguard. BlackRock slashed fees for five core funds in its Collective Investment Funds range as […]


Sinking feeling: Winners and losers from Osborne’s pensions revolution

The UK pensions market is splitting in two eighteen months on from when Chancellor George Osborne first unleashed revolutionary reform on the industry, say investment analysts. The rapid pace of change has left some businesses better able to cope with the new landscape, while others struggle to complete basic tasks and battle dwindling revenue. Money […]

In Focus Ebola cover - thumbnail

White paper — In Focus: Ebola Virus Disease

Jelf Employee Benefits focuses on Ebola Virus Disease (EVD) and what this means for businesses with operations in West Africa. This will be of particular interest to those with employees either travelling to, or living within, West Africa, the area affected by the most catastrophic outbreak of Ebola to date.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm