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Modelling the Impact of Taxation on the Small-Business Economy: The Natwest/MBS Tax Index for the Self-Employed, Sole-Traders, and Partnerships

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  • P Poutziouris
  • F Chittenden
  • N Michaelas

Abstract

The authors describe the development of a model for the evaluation of the tax affairs of UK small unincorporated firms (with fewer than 20 employees). After a brief review of the literature relating to small-business taxation, the main parameters of the NatWest/Manchester Business School tax model for unincorporated businesses are established, Subsequently the model is employed to evaluate small-business taxation from two angles. First, the authors offer a post-1999 budget analysis of the impact of taxation on small-business owners and their employees. Second, the authors discuss a set of proposals which have the potential to improve the neutrality of the tax system towards small-business owners' decisions.

Suggested Citation

  • P Poutziouris & F Chittenden & N Michaelas, 1999. "Modelling the Impact of Taxation on the Small-Business Economy: The Natwest/MBS Tax Index for the Self-Employed, Sole-Traders, and Partnerships," Environment and Planning C, , vol. 17(5), pages 577-592, October.
    • Handle: RePEc:sae:envirc:v:17:y:1999:i:5:p:577-592
    DOI: 10.1068/c170577
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    References listed on IDEAS

    as
    1. DeAngelo, Harry & Masulis, Ronald W., 1980. "Optimal capital structure under corporate and personal taxation," Journal of Financial Economics, Elsevier, vol. 8(1), pages 3-29, March.
    2. Michaelas, Nicos & Chittenden, Francis & Poutziouris, Panikkos, 1999. "Financial Policy and Capital Structure Choice in U.K. SMEs: Empirical Evidence from Company Panel Data," Small Business Economics, Springer, vol. 12(2), pages 113-130, March.
    3. Watson, Robert, 1990. "Employment Change, Profits and Directors' Remuneration in Small and Closely-Held UK Companies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 37(3), pages 259-274, August.
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