CT tax hike cancelled

[dude69]

This budget is not too bad for contractors at the moment (they usually screw people in the small print afterwards) - the 21% -> 22% CT increase has been cancelled.

[MPwannadecentincome]

not exactly cancelled, apparently it has been put on hold.

[TheFaQQer]

Here's the PCG statement / email on it - it's delayed until 2010:

In his final Budget, in 2007, Gordon Brown announced that the small
firms rate of corporation tax would rise in three increments to 22%,
the final increase being due in 2009. He cited fears over tax-motivated
incorporation for this, even though PCG's member survey data has
consistently shown that freelancers tend to incorporate out of
commercial necessity more than for tax reasons.

This increase has now been deferred until 2010, and the small firms'
rate will remain at 21% until then.

The Government has also issued a discussion paper on possibilities for
simplifying corporation taxes for small firms. This follows a stream of
work initiated in the Budget earlier this year, to which PCG has already
offered input. Members' views will be sought and a response to the most
recent document submitted:
http://www.hm-treasury.gov.uk/d/pbr0...review_267.pdf

[TheFaQQer]

There's an interesting typo / Freudian slip on the HMRC website:

he planned increase in the Small Company Rate from 21% to 22% from 1 April 2009 has been deferred until 1 April 2010.will not be introduced.

So - has it been deferred, or is it not being introduced? I'm guessing the first.