Simplification) has proposed some simplifications but more substantial change in the tax system will be needed to address the problem of tax complexity.
The clearest way of simplifying the tax code is to abolish entire taxes. Former Chancellor Lord Lawson of Blaby has described it as “the ultimate simplification”, and as a result he “sought to abolish a tax at every Budget” and “was able to do it in six successive Budgets.” The 2020 Tax Commission’s recommendations would abolish eight taxes:
1. Employers’ National Insurance 2. Employees’ National Insurance
3. Corporation Tax 4. Capital Gains Tax 5. Inheritance Tax
6. Stamp Duty Land Tax 7. Stamp Duty on shares 8. Air Passenger Duty
“A single tax on labour and capital income, at the same rate; abolishing eight taxes and creating only one in return; a much simpler and more transparent tax code. It is a serious plan for a tax system that can restore Britain’s economic fortunes.”
CIPP comment: This 2020 report took two years to compile and contains a lot of research and detail as to why these proposals should be given serious consideration. What we don’t know at this stage is whether the government will formally respond to this report and of course there is the next stage of the integration of tax and NICs consultation in the autumn to consider. We will of course keep members posted.
Further Information
Summary of 2020 report The Single Income Tax – full report
Social Security (Categorisation of Earners) Regulations 1978
LECTURERS, TEACHERS, INSTRUCTORS ETC. REGULATIONS REPEALED
21 March 2012
The Statutory Instrument repealing the Social Security (Categorisation of Earners) Regulations for lecturers, teachers, instructors or those in a similar capacity has been published.
Further information:
Background - News On Line 22 February 2012
Statutory Instrument: SI 2012 No 816 and Explantory Memorandrum
REMOVAL OF SOME OCCUPATIONS LISTED FOR NICS PURPOSES
11 July 2012
CIPP Policy News Journal
12/04/2013, Page 350 of 362
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