A report from the 2020 Tax Commission (a joint project by the Institute of Directors (IoD) and the TaxPayers Alliance (TPA) calls for taxes to be simplified and for a single income tax rate at 30% to be created in order to boost the economy.

This has been welcomed and applauded as a radical approach to economic growth by many business groups such as the Forum of private Business (FPB) and the Centre for Economic and Business Research (CEBR). The recommendations include:

The UK tax system to be simplified with taxes cut to 33% of national income.
Eight taxes to be scrapped entirely.
A single proportionate income tax to be created at 30%.
The personal allowance to rise to £10,000.
Taxes on capital and labour income “disguised as business taxes” to be abolished and replaced with a tax on distributed income.
Income Tax and Employees’ and Employers’ National Insurance to be merged.
Corporation Tax and Capital Gains Tax to be replaced with a single tax on capital income — dividends, interest and rent — at a rate of 30%.

According to analysis by the CEBR, GDP would be increased by 8.4 per cent over 15 years.

Graeme Leach, commissioner and director of policy at the IoD said:
“This is a radical and practical plan for reforming our tax system to make it fairer and better for the economy. We need radical action to kick start the economy, and this is a comprehensive way to do that in one go.”

Tonmoy Kumar, Manager of the Accounts Department of ABDS says:
“As all businesses know only too well, the current tax system in the UK is notoriously complex. Now more than ever the country requires a tax system that is fair, simple, and proportionate for everyone who pays in.”

If you have any questions or concerns about Tax Planning and compliance, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar to discuss how ABDS can help

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900 E-mail: abds@netaccountants.net

Great with People, Brilliant with numbers, Clear and precise with words

« Back to Tax Tips