Dan Neidle has stated that the design of the UK tax system often inhibits economic growth, suggesting that discussions too frequently focus on tax as a revenue raiser rather than its economic sense.
Neidle points to the complexity of corporation tax, arguing that decades of anti-avoidance legislation have made the system bewildering. He also notes that the UK performs poorly internationally on tax competitiveness due to this complexity, not just the headline rate.
Regarding small businesses, HMRC estimates the tax gap to be between £30bn and £48bn annually, with Neidle questioning the lack of evidence on why this revenue is not being collected. He also highlights issues with personal taxation, where the withdrawal of benefits and allowances can result in individuals facing 'absurdly high effective tax rates' for earning more, potentially discouraging work.
Other areas identified for reform include business rates, which can penalise investment in premises, and stamp duty on shares, which may make investing in UK companies less attractive. Neidle also suggests that the £90,000 VAT registration threshold creates an incentive for small businesses to limit their growth.