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Changing tax for the self-employed


  • Graeme Macdonald
  • Edward Whitehouse


The government’s overhaul of the direct tax system, including the 1984 reforms to the Corporation Tax, the introduction of Independent Taxation and in 1993, the introduction of ‘pay and file’ for companies, has so far left the taxation of the self-employed relatively untouched. Despite many criticisms of the system, including more recently the Keith Committee report (1983) and the Public Accounts Committee of the House of Commons (1976), it is only now that the government has considered reforming the income tax system as it relates to the self-employed, with the publication of a consultative document, A Simpler System for Taxing the Self-Employed, (Inland Revenue, 1991a). At the heart of the proposals is reform of the ‘preceding year basis of assessment’ (PY basis), introduced by Winston Churchill in 1926, itself then billed as a ‘simplification’ of the system.

Suggested Citation

  • Graeme Macdonald & Edward Whitehouse, 1993. "Changing tax for the self-employed," Fiscal Studies, Institute for Fiscal Studies, vol. 14(1), pages 107-126, February.
  • Handle: RePEc:ifs:fistud:v:14:y:1993:i:1:p:107-126

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    References listed on IDEAS

    1. Frederic S. Mishkin, 1992. "An Evaluation of the Treasury Plan for Banking Reform," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 133-153, Winter.
    2. David J. Teece, 2003. "Towards an Economic Theory of the Multiproduct Firm," World Scientific Book Chapters,in: Essays In Technology Management And Policy Selected Papers of David J Teece, chapter 15, pages 419-446 World Scientific Publishing Co. Pte. Ltd..
    3. Kane, Edward J, 1984. " Technological and Regulatory Forces in the Developing Fusion of Financial-Services Competition," Journal of Finance, American Finance Association, vol. 39(3), pages 759-772, July.
    4. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    5. Montgomery, Cynthia A. & Hariharan, S., 1991. "Diversified expansion by large established firms," Journal of Economic Behavior & Organization, Elsevier, vol. 15(1), pages 71-89, January.
    6. Sue Jaffer & David Thompson, 1986. "Deregulating express coaches: a reassessment," Fiscal Studies, Institute for Fiscal Studies, vol. 7(4), pages 45-68, November.
    7. Bailey, Elizabeth E, 1986. "Price and Productivity Change Following Deregulation: The U.S. Experience," Economic Journal, Royal Economic Society, vol. 96(381), pages 1-17, March.
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    Cited by:

    1. Laura Blow & Ian Preston, 2002. "Deadweight loss and taxation of earned income: evidence from tax records of the UK self-employed," IFS Working Papers W02/15, Institute for Fiscal Studies.

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