A report produced by the 2020 Commission looking into tax reform has been published today.
It follows 18 month's of collaborative work between the TaxPayers' Alliance and the Institute of Directors (IOD).
In summary:
- The report maps out recommendations for tax cuts and overall reform of the UK tax system.
- Abolish National Insurance and Stamp Duty.
- Set a £10,000 Personal Tax Free Allowance.
- Set a single income tax rate of 30 percent for income and capital gains.
- Replace corporation tax with a 30 percent tax on dividends, interest and rent.
- Cut air and fuel duty by 5p.
- Restrict taxation to one third of national income.
- Cut central Government grants to councils but allow local councils to set individual income and sales taxes.
The Commission argues that by taking up the radical proposals the country's productivity would be boosted resulting in a £35 Billion reduction in annual borrowing after 15 years. It does concede however that unless phased in, the reform would cost £49 Billion in the first year of implementation.
You can try proposed scheme for income tax with your income figures at this
custom tax calculator, just adjust the rates and allowances on the left to reflect the proposal.
- Set income tax allowances as 10000
- Set all income tax band percentages to 30
- Set all national insurance percentages to 0
- Set Tapering Limit to as high as it goes....or 1500000
Using these examples, and compared to taxation in 2012/13, We have created the following figures:
- £10,000 Income - Saving under proposal £667 per year
- £12,500 Income - Saving under proposal £717 per year
- £15,000 Income - Saving under proposal £767 per year
- £17,500 Income - Saving under proposal £818 per year
- £20,000 Income - Saving under proposal £868 per year
- £22,500 Income - Saving under proposal £918 per year
- £25,000 Income - Saving under proposal £967 per year
- £30,000 Income - Saving under proposal £1,068 per year
- £35,000 Income - Saving under proposal £1,168 per year
- £40,000 Income - Saving under proposal £1,268 per year
- £45,000 Income - Saving under proposal £1,621 per year
- £50,000 Income - Saving under proposal £2,221 per year
- £60,000 Income - Saving under proposal £3,421 per year
- £70,000 Income - Saving under proposal £4,621 per year
- £80,000 Income - Saving under proposal £5,821 per year
- £90,000 Income - Saving under proposal £7,021 per year
- £100,000 Income - Saving under proposal £8,221 per year
- £120,000 Income - Saving under proposal £13,863 per year
- £140,000 Income - Saving under proposal £16,263 per year
- £160,000 Income - Saving under proposal £19,663 per year
Try more at the calculator....!
