The UK’s Most Misunderstood Tax Deserves the Ax: Matthew Brooker

May 15, 2025, 4:00 AM UTC

For the second time in little more than six months, Britain’s Labour government finds itself mired in a controversy over national insurance contributions. The latest row may be contrived, but it illustrates the murkiness and confusion surrounding a tax that tens of millions of people pay — but almost no one understands.

As part of the free-trade deal concluded with India last week, the government agreed to exempt employees on temporary assignment in the UK from this payroll tax. That spurred accusations from opposition politicians that Labour was selling out British workers by making it cheaper for Indian companies to send ...

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