Setting aside the monarchy the top job in the country is the prime minister so he or she should get the largest reward and in 2016 a package with a total including all perks of £1,000,000 would seem adequate (with a built in increase of 4% / annum). So no one should earn more than this.

Employers would be free to pay what they liked but if the package was over £1,000,000 then it would be taxed at 100% for every £1 over this amount apart from this, income tax would be abolished. There would be a system of fines and imprisonment for accountants and financial advisers cynically trying to get around this scheme. The lowest wage for a full time employee (35 hours / week) would be £10,000 this would give 100 pay increments from lowest to highest paid people which should be enough to allow for differentiation between skills and responsibilities. 

With very little income tax to collect we would not need the Inland Revenue and this would be a ready source of skilled personal who could be re-deployed to the border agency who would be expected to inspect 100% of all imports for diseases, pests and potential hazards being imported into the country. Also a point system would be introduced so migration is restricted to people who have skills that this country needs and this would be administered and policed by this beefed up border agency.

We already have a highly efficient taxation system in place called VAT. We can use this system to replace the loss in income tax and to make sure all the countries working residents have a comfortable life style.

So we need to decide on what is the basic minimum a full time working person should expect from life. Anything in this category is VAT free, so if we decide that a person earning this wage should be able to run a small car then all basic entry level cars e.g. Peugeot 106 should be VAT free as the complexity, exclusivity and environmental unfriendliness of a vehicle increase so its VAT rate should be increased so that a top end luxury limousine is taxed at 50% i.e. if it sells at £100,000 then the government gets £50,000.

We can also use the VAT system to make sure we eat and drink more healthily so fresh fruit and Veg are 0% VAT whereas granulated sugar is 50% VAT etc. Another job for those redundant Income tax collectors.