"genuine and long lasting simplification can only be brought about through major structural changes to the UK tax system. Our key recommendations are that the Government starts to look at reforming the structure and we recommend that a timetable be set out by the end of the year. The two key areas that require attention are:
Studies on how best to achieve this could be carried out, for example, by setting up a working party and through consultation with advisers and professional bodies within a specified timeframe."
- The integration of income tax and national insurance contributions (“NICs”); and
- Introducing a radical new approach to taxation for the very smallest unincorporated businesses.
- Consistency in the definition of earnings;
- Consistency in the required calculations;
- Reliefs and exemptions on either income tax or NICs;
- Treatment of pensioners;
- Treatment of self-employment; and
- Treatment of savings and dividend income.