High taxes stifling UK growth

The tax system puts a heavy burden on growing enterprises as their taxes increase the more they produce, revealed a report published by the Institute of Directors (IoD) today. Even the smallest firms with five employees have to pay more than 30 per cent of their profits in tax, while middle-sized businesses have to pay more than 40 per cent – taking about four months’ worth of profits. “Entrepreneurs and investors will not put their money on the line if the return after tax is too small,” said Richard Baron, head of taxation at the IoD.