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National insurance: a UK tax which is complex and vulnerable to political intervention

By Gavin Midgley, Senior Teaching Fellow in Accounting, University of Southampton

The UK government has announced plans to raise the rate of national insurance by 1.25% to fund increased spending on health and social care. The move has divided opinion – and also brought attention to a tax that is one of the largest in terms of treasury revenue (second only to income tax), but probably one of the least understood.

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