Will the Reform of Small Business Tax be beneficial for UK Economic Growth

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CHAPTER 1: INTRODUCTION1

Background of the Study1

Purpose of Research Study2

Aims and Objectives of the Study3

Research Questions4

Outline of the study4

CHAPTER 2: LITERATURE REVIEW6

Small business tax system6

Equitable tax treatment of business income7

Simplifying the tax policy8

Tax gap8

Micro business exemption from accounting regulations8

Audit exemption for small business9

Real time information9

Conclusion of the Chapter10

CHAPTER 3: METHODOLOGY11

Research Onion11

Research Design11

Research Method12

Ethical Considerations13

Conclusion of the Chapter13

CHAPTER 1: INTRODUCTION

Background of the Study

Reforms when implemented after significant research and analysis possess the potential to be beneficial for the progress and advancement of the relevant department, and these benefits many of the times are greater than that influencing substantial economic development and growth. Such is the case with taxation and the relevant reforms that might be made in that arena. This research study is focused on the tax reforms pertaining to small businesses, however to develop an inclusive and thorough background of this study, it is imperative to be general so as to gain comprehensive insight pertaining to all the factors that interact to affect or play pivotal role in this domain. This would be better because not only comprehensive insight would be ensured, but this will also be most effective as some tax concerns remain same regardless of the size of the business. Nevertheless it is important to be mentioned that the main tax concern of small businesses remains in the area of payroll taxes whilst larger businesses are more concerned with the income tax and hence, the goals concerning tax reforms on the basis of priority is imperative to differ with the change in the size of the business (Baurer, 2005). Regardless, as mentioned above, it is important to keep this restricted to general as of now rather than specific discussion pertaining to tax reforms so as to reflect on the economic growth aligned with the small businesses more precisely and accurately later, which could only be facilitated and developed through moving towards specificity; smaller businesses, gradually.

Income tax rate is one of the major concerns to which businesses are presented with, however as mentioned above, larger businesses are more bothered by this factor as the impact significantly increases with the increase in the size of the business, for which the lowering of income tax pertaining to corporate as well as the flow through income is supported the most as an ideal reform for the concern to be addressed (Benneyworth, 2010). Reform pertaining to payroll taxes reduction; as payroll tax emerged as one of the top concerns to which small businesses are subjected to, is also supported by large as well as medium and small sized businesses; regardless of it being the top priority for small sized businesses to tackle through the introduction, draft and implementation of relevant reforms (Engelschalk, 2007). Elimination of estate taxes and the enactment of a single, flat rate for the income tax have been supported by the business, regardless of their size as it is associated with an absolute economic growth due to the elimination of ...