A report on the reform of UK taxation was commissioned by the Institute for Fiscal Studies (IFS). The report was written by leading public finance economists, led by a Nobel Prize-winning Cambridge professor James Mirrlees. The report, published in 2012, takes a broad view of taxation taking into account the vast research which has been done in the area of public finance and taxation..
Small Business Taxation by Claire Crawford and Judith Freedman forms Chapter 11of this report. This chapter deals with aspects of individual taxation which are readily apparent to tax practitioners.
What is the key structural question which is discussed in this chapter and why is this question important? (700 words max)
What approaches have been tried or proposed to address the tax implications of the differential tax treatment (800 words max)
Assuming profits/income of £25,000 and £75,000 update Tables 11C.1 and 11C.2 using 2014-15 tax and NIC rates and discuss the implications of the historical trends for individuals who are employed or self-employed.(700 words max)
In your opinion, is there a need to address the differential tax treatment referred to in this chapter. In your answer to this question you are required to present arguments both for and against the differential tax treatment. At least three arguments in favour of continuing with the differential treatment and three arguments against continuing with differential tax treatments should be included.(700)
Maximum word count 3000
Dead line: Friday 13th February 2015 5.30pm.