increasing the size and number of small pension pots that can be taken as a lump sum reducing business and household energy costs by freezing the Carbon Price Support rate at £18 in 2016-17. The government has also committed to maintain this freeze to the end of the decade. This will save businesses £4 billion by 2018-19, and will help British firms to compete in the global race increasing the Annual Investment Allowance to £500,000 until 31 December 2015, giving 99.8% of all businesses (4.9 million firms) 100% upfront relief on their qualifying investments in plant and machinery supporting research-intensive start-ups and early-stage companies through an increase to 14.5% in the payable R&D tax credit for loss-making SMEs, supporting over £1 billion of investment over the next five years introducing a new requirement that users of tax avoidance schemes which have been defeated in another party’s litigation, or which fall within the scope of the Disclosure of Tax Avoidance Scheme (DOTAS) rules or the new General Anti-Abuse Rule (GAAR), should pay the disputed tax upfront extending the Annual Tax on Enveloped Dwellings (ATED) and associated measures to reduce incentives for residential properties to be held as investments in corporate “envelopes” and left unoccupied tackling the avoidance of employment taxes, by taking action to prevent employment intermediaries (both onshore and offshore) from avoiding their obligations, including through disguising employment as false self-employment
The measures contained in the bill were announced by the Chancellor at Budget 2013 , Autumn Statement 2013 or Budget 2014 .
General PAYE News
THE SINGLE INCOME TAX REPORT FROM THE 2020 TAX COMMISSION
12 June 2012
The 2020 Tax Commission proposes a simple Single Income Tax that taxes streams of income only once.
The report states, “To create the conditions for stronger economic growth and more jobs, while treating taxpayers fairly, the Government must reform taxes to make them lower, simpler and more transparent.”
To achieve this, the 2020 Tax Commission recommends the Single Income Tax, which can be introduced in six steps:
1. Taxes should be cut to 33 per cent of national income 2. Marginal tax rates should not exceed 30 per cent, and the personal allowance should rise to £10,000 3. Taxes on capital and labour income disguised as business taxes should be abolished, and replaced with a tax on distributed income 4. Transaction, wealth and inheritance taxes should be abolished 5. Other consumption taxes need to stay for now, but transport taxes should be cut 6. Local authorities should raise half of their spending power from local taxes The report advocates a radical new system that taxes all income from labour and capital only once at a flat rate of 30 per cent, above a generous personal allowance for individuals and with no loopholes. National Insurance and Income Tax are merged into this new system; Corporation Tax is repealed and replaced by an unavoidable tax on distributed income from
CIPP Policy News Journal
16/04/2014, Page 282 of 519
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