The two systems are currently operated separately and the government believes that greater integration of the two has the potential to remove economic distortions, reduce burdens on business and improve fairness individual earners.
Exchequer secretary to the Treasury David Gauke said that although it would be “a radical reform, it has the potential to bring real improvements to the UK tax system”.
It has launched a consultation in which employers are invited to submit their views on the proposals, asking employers how much time is taken to manage the systems, which aspects of the processes currently work well and what problems are encountered when calculating payments.
The proposal was embraced by red tape beleaguered retailers. Andrew Porter of Creightons of Finaghy in Belfast said that employee red tape was “one of the most burdensome aspects of retail” and welcomed any potential changes to make it easier.
Submissions to the consultation can be made here. The deadline is September 19.