The hidden costs of National Insurance
The Tax Faculty of the Institute of Chartered Accountants in England and Wales conducted a survey of tax practitioners to determine which areas of the tax system they perceive to entail unreasonably high costs of compliance. Done in consultation with the Inland Revenue and the Dept of Social Security, the survey showed that payment of the National Insurance contributions (NIC) was one of these areas. Many tax consultants who provide advice on NIC favor the abolition of the insurance or, at least, its integration into the general income tax system. Survey participants reported that their clients often incur needless compliance costs, primarily because of such technical factors as the discrepancy between income tax and NIC definitions for earnings and expenses. The Contributions Agency was also criticized for refusing to acknowledge tax consultants as their clients' agents and to communicate with them as such.
Publication Name: Accountancy
Insurance brokering gears itself to the world market
The insurance brokerage industry, which can be more accurately described as the insurance consultancy industry, is dominated by a small group of large firms. Large brokerage firms are growing even larger and increasing their presence in foreign markets through acquisitions and mergers, while smaller firms are becoming more specialized. The description of brokerage firms as insurance consultants is the result of brokers' provision of a wider variety of services, including risk management, financial planning, and personnel management consulting services.
Publication Name: The Accountant's Magazine
Insurance and its alternatives
There are ways for a business to minimize the impact of risks. Many managers believe that their insurance policy will cover any liability without analyzing exactly what the risks of their particular business are. Insurance is often used as an alternative to good risk management within the company. Many risks can be eliminated, controlled or covered by self-insurance. A risk audit by an impartial party can provide vital information to general; management.
Publication Name: Accountancy
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