LIFE will consolidate all incomes into a single National Contribution, paid by everyone on all earnings. That’s what we call Paid Fair.
Everyone’s wages will have lower rates of taxation.
National Contributions are a smoothly progressive rate structure, applied to a flat definition of incomes that includes both active and passive incomes. Anchored to average income, National Contributions (NCs) broadens the tax base and creates mutual interest in economic development. If the economy grows, but someone’s wages do not, then their taxes automatically fall.
National Contributions simplify income taxes by combining National Insurance Contributions (NICs), Income Tax (IT), Capital Gains Tax (CGT) and Inheritance Tax (IHT) into a single tax.
National Contribution Rate Setting
The “Base Rate” and a “Top Rate” for the following year will be declared by the government in the Budget each year.
The Base rate applies to median income and grades down to 0% at zero income.
Between the median and top 10% incomes, rates increase in a straight line from the Base rate to the Top rate.
The Base rate will start at 20% in 2025 and be reduced by 1% point each year in the first parliament.
The Top rate will be 45% during the first parliament and apply to the top 10% of incomes.
Other Changes
The following are the other significant changes to the structure of Income Tax:
- All worldwide income received by a UK citizen or a UK resident, and UK income received by a foreign resident, will be subject to National Contributions (subject to Double Taxation treaties). Earned wages, unearned income, capital gains and inheritance will all count the same.
- The personal allowance will be replaced by Voluntary National Contributions which will apply to all incomes below £200 a week.
- Each individual will be assessed for taxes separately.
- The tax year will be changed to a calendar year effective January 1st 2027.
Budget Revenues
The UK Budget page has the numbers on revenues.
UK LIFE 
One reply on “National Contributions (Paid Fair)”
Merging Income Tax and National Insurance has long been discussed, and most parties have considered it in some form or another, and one time or another.
The reality is that NI long ago lost any credible link to social provision, and it in fact just a stealth tax on wages. http://www.theguardian.com/business/economics-blog/2015/jul/26/time-to-look-at-national-insurance-the-ultimate-stealth-tax
By merging the main taxes on wages LIFE will simplify the system, helping everyone understand what they are really paying, and making the system properly progressive.
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