Income Tax and National Insurance Contributions
Commons · Question 116056 · Tabled 25 Feb 2026 · Treasury · Official record
Answered 6 Mar 2026
Question
Asked by Scott Arthur
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of aligning National Insurance Contributions (NICs) earnings periods with those of income tax.
Answer
Answered by Dan Tomlinson, 6 Mar 2026
This would be a significant change, as National Insurance contributions (NICs) and Income Tax work quite differently at present.NICs are charged on earnings on a per-employment, per-pay period basis, whereas Income Tax is an annual tax, and takes into acc...