Finally we have party of business!

[AtW]

“Keir Starmer under pressure to back plans for corporation tax rise

Labour leader has faced backlash after saying he would oppose any new tax on business in budget

Keir Starmer is under pressure to back future rises in corporation tax after a backlash when the Labour leader said he would oppose any new tax on business in next week’s budget.

Treasury officials are believed to be looking at increasing the tax on company profits from the current rate of 19% to up to 25% as the government tries to recoup some of the massive debts incurred during the pandemic, though the rise may be delayed until later in the parliament.

During prime minister’s questions on Wednesday, Starmer said: “Now is not the time for tax rises on families and businesses.”

https://www.theguardian.com/uk-news/...-labour-budget

[AtW]

""MPs could vote down plans to increase corporation tax from 19 per cent to 25 per cent amid opposition from Tory rebels and Labour, a senior minister has said.

Rishi Sunak is expected to use his budget next week to announce a “pathway” to increase corporation tax over the course of the current parliament. It had been thought that he was looking to raise it to 23 per cent.

However, The Times has been told that officials are considering going as high as 25 per cent. Sunak’s US counterpart, Janet Yellen, said recently that corporation tax in the US might rise from 21 per cent to 28 per cent. This would mean that the UK could still claim to have the lowest level of corporation tax in the G7 group of developed nations. The first increase is likely to be in the autumn budget, with subsequent rises.

However, there is significant opposition to the move among Tory backbenchers and in cabinet. Mark Spencer, the chief whip, has told Tory MPs that the government will consider any revolt over the budget equivalent to a vote of confidence against the prime minister. It raises the prospect of Tory MPs being stripped of the whip if they rebel. David Davis, a former Brexit secretary, has said that he will vote against the budget if there are significant tax rises.


https://www.thetimes.co.uk/article/t...rise-bk78tnv3j

[AtW]

"Rishi Sunak will abandon Britain’s decade-old experiment with low corporation taxes at the budget. The current rate of 19 per cent may be increased to 23 per cent over the parliament, raising £12 billion to help fill a structural hole in the budget deficit of anywhere between £25 billion and £40 billion. Or he may go even higher, to 24 or 25 per cent, which would still leave the UK with the lowest combined corporation tax rate in the G7.

Alternatively, he may stop at 21 per cent, with the Treasury briefings just another example of “pitch rolling” to give businesses a nice surprise in the budget after warning of nasties. But, after ten years of cuts, the shift will be more than just symbolic.

Corporation tax cuts were the centrepiece of former chancellor George Osborne’s economic strategy. In his first budget in June 2010 he announced that the main rate would be cut by 1 percentage point a year between 2011 and 2014, from 28 per cent to 24 per cent, and the small profits rate reduced from 21 per cent to 20 per cent. Over the next three years, he unveiled four further reductions, creating a single rate of 20 per cent.


https://www.thetimes.co.uk/article/g...work-xgcbgvt8q

Sure it worked ... for the Treasury: overall take gone up, they jacked divi taxes up too and now the end game - corp tax going up, so overall taxation massively increased in the last 10 years, plus in top of it new NICs called “auto-enrolling”

[mattster]

Amazon must be getting twitchy!

I'm assuming they'd bump the dividend allowance back up and reintroduce an even more generous small profits rate, so I'm not too worried.

[AtW]

I'm assuming they'd bump the dividend allowance back up and reintroduce an even more generous small profits rate, so I'm not too worried.

That's the fun bit - if they take it back to 25% it will be new "unified" rate, so next effect like +5% corp tax for small companies, and like what +10% by virtue of disallowed dividend tax credit, very fitting to the Pro Business Party end of decade.

[SueEllen]

Amazon must be getting twitchy!

Why do they pay any corp tax in the UK?

Most large organisations have legit ways of not paying HMRC.

[jamesbrown]

Amazon must be getting twitchy!

I'm assuming they'd bump the dividend allowance back up and reintroduce an even more generous small profits rate, so I'm not too worried.

Pfffft.

[SueEllen]

Starmer probably has people explain to him the different ways companies can get out of paying Corp tax and actually listened.

[mattster]

Why do they pay any corp tax in the UK?

Most large organisations have legit ways of not paying HMRC.

It was just a little joke
Don't worry, they'll be fine. We'll get to pick up the tab.

[AtW]

Starmer probably has people explain to him the different ways companies can get out of paying Corp tax and actually listened.

Starmer is a QC, that's right, he should have pretty good idea how that all works.