Simplify the UK Tax System for Greater Fairness and Efficiency

Idea Summary

The UK tax system is overly complex, inefficient, and burdensome for individuals and businesses alike. This idea proposes a complete simplification of the tax code, streamlining rates, removing unnecessary exemptions, and modernising tax collection to create a system that is fairer, clearer, and easier to navigate.

The Problem

The current tax system in the UK includes thousands of pages of rules, numerous exceptions, and a confusing mix of direct and indirect taxes. This complexity leads to:

>>> Wasted time and money on tax advice and administration.

>>> Opportunities for avoidance and loopholes exploited by the wealthy and large corporations.

>>> Disadvantage to small businesses and ordinary taxpayers who can’t afford expert help.

>>> Erosion of trust in the fairness of the system.

The Proposed Solution

Consolidate and Simplify Tax Bands

>>> Merge overlapping income tax and national insurance contributions.

>>> Reduce the number of tax brackets to a clear, understandable structure.

Streamline Business Taxes

>>> Replace complex business rates and corporation tax allowances with simplified, flat-rate schemes for SMEs.

>>> Introduce a single digital tax platform for real-time reporting and payments.

Review and Reduce Tax Reliefs

>>> Eliminate outdated or regressive reliefs that disproportionately benefit high earners or niche sectors.

>>> Maintain only those that serve a clear public interest (e.g., R&D, green energy investment).

Transparent Tax Code

>>> Rewrite the tax code in plain English, accessible to the general public.

>>> Make all tax rules and changes fully available online in a searchable, user-friendly format.

Benefits

>>> Increases compliance and reduces avoidance.

>>> Levels the playing field between individuals and corporations.

>>> Cuts down administrative costs for HMRC and taxpayers.

>>> Boosts public confidence and understanding of how tax money is collected and spent.