A Simple Efficient Tax Regime UK

Thank you for taking the time to visit this page and whether you are a U.K. citizen or not, this report on a Simple and Efficient Tax Regime for the United Kingdom, may be adapted to most of the tax regimes currently in use.

The concept for the Simple and Efficeint Tax Regime was to offer a fairer and more cost effective way of collecting taxes by reducing the burden on compliant tax payers by capturing those who currently fail the system, through tax evasion, avoidance or via income generated within the black economy.

A Simple and Efficient Tax Regime For the United Kingdom


The opinion in this report represents the view of the author and not HMRC or any other organisation.



The aim of this proposed UK tax regime is to enable HMRC to collect a fair tax from every business operating in the UK including those who currently pay no tax at all, either though non-declaration of profit due to deceitful accounting or fraud, tax planning or through black economy activities.

It will also satisfy the UKs aim to offer the most competitive and straightforward tax regime in the G20 and become the best place to start, finance and grow a business.1

The cost associated with administration, filing and submitting accounts will also be significantly reduced and in many instances will negate the need for a large percentage of UK businesses to use the services of accountants, tax advisors or book keepers.

Under the proposed regime, all taxes will be collected on a monthly basis, rather than annually in arrears, which will reduce the interest costs on our public debt, and enable HMRC to identify potential problems, almost immediately. It will also remove the opportunity for individuals and companies, to defer their tax liabilities, which will allow HMRC to collect the billions in taxes that are currently owed.2

The proposed regime will also remove the unfair burden that currently falls upon those law abiding citizens and companies who pay an increased amount of taxes due to the deliberate evasion of others, by effectively and efficiently collecting taxes from all individuals who earn income in the UK and on all UK registered businesses.

A large proportion of the proposed regime will be based on a Tax on Turnover / Point of Sale Tax, which will produce a simplified accounting and collection system, and enable HMRC to charge a fairer tax on the total turnover, which currently stands at £3,100 billion3 for the current 4.8 million private sector businesses4 in the UK, and on every individual who purchase goods or services either in or from the UK.

The cost of goods and services in some instances will increase by a few percentage points, however in the majority of cases, prices will in fact fall. Net company profits will remain the same, with gross profit only reduced in line with the tax savings gained under the proposed regime.

The proposed alteration to, and charges of our National Insurance Contributions will provide sufficient funds to eradicate poverty in the UK, offer one million plus new employment positions, lessen the current burden on our National Health Service by building new hospitals for persons of state pension age and over, provide the Government with additional funding to embark upon their programme for the renovation and construction of existing and new schools, construct and therefore offer new, affordable and sustainable homes for 6 million families and eradicate short term unemployment for the 60,000 students who graduate each year.

1. HMRC: Making Tax Easier, Quicker and Simpler for Small Business, March 2012 Page Foreword                                          

2. Missing Billions: Richard Murphy, Researched on behalf of the TUC, taxresearch.org.uk Page 22 and 26                           

3. 4. BIS: Population Estimates for the UK and Regions: 17th Oct 2012: Page Summary and Table 1



The proposed UK tax regime is based on the following four tax areas, which will replace Income Tax, Capital Gains Tax, Inheritance Tax, Corporation Tax, Value Added Tax and Employer National Insurance Contributions.

The proposed regime will provide all UK businesses with a simplified form of accounting and the personal assistance of a newly appointed HMRC Tax Advisor.

Under this proposed regime, the majority of SMEs will no longer require the services of an accountant.


Annual Business License:                                   

This annual business license is a registration of all UK business to file taxes under the simplified regime. This fee based license is annually renewable and will allow each business to consult with their own personal HMRC Tax Advisor, which will in many instances eradicate the need for small businesses to appoint the services of accountants or tax advisors. Under the proposed regime, compliance costs and tax returns with errors are expected to fall significantly.


Tax on Turnover:            

This Tax on Turnover is a point of sale Tax which will replace the existing VAT and be charged at a standard rate across all goods and services. As the new tax will be charged on turnover and not on profit, Corporation Tax will also disappear. TOT is a non-deductable Sales Tax for both business and end-consumers on all transactions. TOT shall also be charged where non-recoverable VAT is currently charged within the financial services sector.


Tax on Income:               

Shall be the replacement tax for the Financial Services sector and will be a simplified flat rate tax charged on received income.


National Insurance Contributions:        

The new NICs will be charged on one’s total income, which includes savings and investment income, state and occupational pensions, and earnings-replacement benefits. UK residents and all others with income in the UK will be charged the proposed NICs, irrespective of age. The employer will no longer make employer contributions, but will continue to collect NICs on behalf of their employees. The modified NICs are charged on a rising scale on all income at a rate between 20 and 35 per cent.


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A Simple and Efficient Tax Regime for the United Kingdom, 2013

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