Will Reform of Small Business Tax Beneficial for the UK Economic Growth?

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Declaration of Authenticity

Here I would like to declare that all the information included in this dissertation is based on my individual work without any help from any other party. This dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my own views and they are not associated with any institution or individual member of the country.

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Informative Abstract

The main aim of the dissertation is to find out the benefits gained by the economy of UK as a result of a better tax system developed for the small businesses in the country. There are two directions of the study one will analyze the changes or improvements in the tax system and secondly it will find out the relation between a better tax system and the economic growth of the country. The study took into consideration both the primary and secondary sources in order to finds out the benefits enjoyed by UK's economy as a result of bringing enhancement in the tax of small enterprises. The secondary sources through which the literature review was conducted included information from: magazines, articles, journals and from the website of HMRC (Her Majesty Revenue & Customs). On the other hand primary source was also used to find out the benefits of tax for small enterprises to the growth level of UK's economy. The study concluded that UK economy is able to enjoy economic and social benefits as the tax on small enterprises lead towards development on the country.

INFORMATIVE ABSTRACTII

CHAPTER 1: INTRODUCTION1

1.1 Aims and Objectives2

1.2 Terms of Reference2

1.3 Background3

CHAPTER 2: LITERATURE REVIEW3

2.1 Role of HMRC4

2.2 Problems in Implementation of Tax system6

2.3 Positive Impact of Tax System8

2.4 Factors for Developing a Tax System10

CHAPTER 3: RESEARCH METHODOLOGY12

3.1 Research Methods13

3.2 Justification of the Research Methods13

3.3 Limitations14

CHAPTER 4: RESULTS AND FINDINGS15

4.1 Data Collection process16

4.2 Regression Analysis16

CHAPTER 5: CONCLUSION17

5.1 Recommendations18

References19

APPENDICES21

Will Reform of Small Business Tax Beneficial for the UK Economic Growth?

Chapter 1: Introduction

The economic system in UK is depending on the businesses operated in the country which includes: large organizations, medium sized business, small sized firms and the multinationals. Small businesses during the past few years have contributed immensely to the revenues collected by the government. Small businesses during the past few years have contributed immensely towards the revenues collected by the government. Small businesses are not only contributing towards revenue generation but they are also a great source of providing employment opportunities and enabling the country to achieve higher growth rate. Apart from contributing towards the economy, small businesses are having problems due to the tax system imposed by the government of UK. Like salary taxpayers, small businesses have to pay a large part of their income in paying the taxes obligated by small sized organizations. However, small businesses have become a major contributor towards providing informal operating income to the UK economy; an amount outside the net tax of the ...