Think Small – A blueprint for supporting UK small businesses

Launched with a speech from the then Chancellor, the Rt Hon Sajid Javid MP, the report makes the case for a new Simple Consolidated Tax (SCT), a levy based on turnover for companies with a  revenue under £1 million, which would replace Corporation Tax, Employer’s National Insurance, VAT and business rates. The proposed SCT would remove reporting burdens and enable small businesses to hire, invest and grow. Beyond this central recommendation, the report suggests a series of other measures to further support and empower small businesses. 

Small business represent the backbone of the British economy, making up more than 99% of firms and SMEs providing three quarters of all new jobs. Despite this, the tax system operates on a ‘one-size-fits-all’ approach which forces small firms to jump through the same hoops as large firms. This one size fits all model is failing small business, burdening them with paperwork, bureaucracy and administration. 

To remedy this, the report proposes a new ‘Simple Consolidated Tax’. Drawing upon previous research projects, polling and other data, the report evaluates how firms would benefit under the proposed SCT and how many would be attracted to it for the savings in time and administration.