We call on the UK Government to thoroughly modernise our entire taxation framework—including Income Tax, National Insurance (NI), Corporation Tax (CT), and Capital Gains Tax (CGT)—so it becomes fairer, simpler, and more supportive of domestic small and medium-sized businesses (SMEs). By raising personal allowances, flattening tax and NI rates, and rewarding reinvestment into British enterprises, we can reduce the burden on lower earners, encourage high earners to contribute more or reinvest, and ensure SMEs have the funding they need to fuel sustainable growth.

 

Who Is Affected?

Lower Earners and Families:

Many workers on modest incomes watch large chunks of their pay disappear due to low personal allowances and complex NI thresholds. Household budgets become strained, limiting spending power in local communities.

 

Higher Earners and Employers:

While top earners contribute significantly in tax, the system often incentivises them to shift income into loopholes instead of investing in ways that strengthen the UK economy.

 

Small and Medium-Sized Businesses:

SMEs struggle with limited access to capital, slowing their growth and potential to create jobs. High corporation tax rates and a patchwork of reliefs can discourage expansion and innovation.

 

What Is at Stake?

Fairness and Equality:

When personal allowances are too low, those with smaller incomes pay proportionately more of their earnings in tax. Meanwhile, complex schemes allow higher earners and large corporations to reduce tax in ways most families and SMEs cannot.

 

Economic Growth:

Underfunded SMEs limit job creation and innovation. If we fail to improve the investment climate, we risk widening the wealth gap and missing opportunities for community-based prosperity.

 

Government Revenue:

While we want to lighten the load for lower earners and promote SME growth, it is crucial to safeguard enough revenue to support health, education, infrastructure, and other essential services. Carefully designed supplemental charges or higher flat tax rates can help maintain at least 80% of current tax receipts—without punishing everyday workers or small businesses.

Without these reforms, we risk entrenching economic disparities and stifling the very engine of local growth. Everyday families remain squeezed, and home-grown companies cannot thrive.

 

Why Is Now the Time to Act?

Cost of Living Crisis:

Rising prices underscore the urgency for families and individuals to keep more of their earnings. Increasing personal allowances and streamlining NI contributions would offer vital relief.

 

Global Competition:

Maintaining a moderate but competitive Corporation Tax rate and offering transparent, effective reliefs for new investments will make the UK a more attractive place to do business.

 

Immediate Growth Impact:

Encouraging high earners to reinvest their income or capital gains into SMEs will directly pump funding into local ventures, creating jobs and fostering innovation—especially when we need to future-proof our economy.

 

Proposed Solutions

Substantially Raise the Personal Allowance

Example: Increase from ~£12,570 to £25,000, so lower earners pay no income tax up to that level.

Benefit: Families keep more disposable income, boosting local economies and improving living standards.

 

Flatten Income Tax Above the Threshold

Example: Introduce a single 33–35% tax rate on income above £25,000.

Benefit: Simplifies the system, reduces avoidance, and ensures consistent revenue streams.

 

Unify or Simplify NI Contributions

Option: Merge NI with Income Tax or create fewer, simpler NI bands.

Benefit: Less confusion, reduced administrative costs for employers, and lower-income workers benefit from clearer, fairer thresholds.

 

Moderate Corporate Tax with Pro-Growth Incentives

Example: Maintain a flat CT rate in the range of 17–22% while offering expanded capital allowances for reinvestment and R&D.

Benefit: Keeps UK businesses internationally competitive and encourages companies to reinvest profits at home, enhancing innovation.

 

Revamp Capital Gains Tax (CGT) to Encourage SME Investment

Example: Offer proportional CGT relief for any gains reinvested into UK SMEs (e.g., 50% reinvestment → 50% CGT relief, up to an annual cap of £200,000).

Benefit: Directs much-needed capital into small businesses, driving job creation and strengthening local economies.

 

Supplementary Charge on Very High Incomes, Waivable via Reinvestment

Example: A 2–4% additional charge on income above £150,000, waived if that same portion is reinvested into qualifying British SMEs.

Benefit: Ensures high earners pay a fair share or actively invest in the UK’s future, offsetting any potential revenue loss from other tax reforms.

 

Strict Anti-Avoidance Measures

Requirement: Clear, transparent definitions for qualifying SMEs, mandatory holding periods for investments, and regular reporting to HMRC.

Benefit: Minimises gaming, ensuring reliefs reward genuine economic growth and not short-term tax dodges.

 

Sign Our Petition

By signing and sharing this petition, you champion a simpler, fairer, and more dynamic tax system—one that lifts up families, ensures fair contributions from top earners, and channelises critical funding into UK SMEs. Let’s seize this moment to foster a robust economy where workers, small businesses, and communities all benefit.

Join us in urging the Chancellor of the Exchequer and HM Treasury to modernise the UK’s tax, NI, and investment rules without delay—help us build a fairer, stronger future for everyone.