capital, be it equity, debt or property. Several other taxes – including Stamp Duty and Inheritance Tax – are also repealed.
The report says that while consultation and proper deliberation is necessary, it is important that the process is not too slow. They acknowledge that the OTS (Office for Tax 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
PAYE – LET US TAKE A LOOK BACK TO 1944
5 March 2013
If you are reassured by historical perspective then you might enjoy a wander down memory lane with HMRC – 1944 memory lane to be precise.
Before the emails start to fly, we are not suggesting for one moment that any of us are old enough to recall this advert, but, with one month to go before the vast majority of employers are required to begin submitting PAYE information in real time, HMRC has taken the opportunity to provide us with a real piece of history with the publication of a government sponsored advertisement from 1944, available from British Pathé, which was issued when PAYE was first introduced.
HMRC PAYMENT BOOKLET ISSUE FOR 2013-14
28 March 2013
CIPP Policy News Journal
16/04/2014, Page 283 of 519
Made with FlippingBook - Online magazine maker