Coproration Tax To Rise to 25%

[AtW]

If it's tapered rather than stepped it will be linear, nobody has the nous to understand anything else.

If it's anything like previous corp tax taper it will raise pretty quick.

[Great Parks]

A small hair salon? A sandwich shop or pub? Someone running a B&B?
Really not hard when you look outside your own bubble. Many businesses make very little profit especially if they pay salaries rather than just use dividends.
For that matter, many contractors have profits under £50k once salary and pension and everything is worked out.

Hardly. How many of those you've listed are going to be incorporated?

[SueEllen]

Hardly. How many of those you've listed are going to be incorporated?

There are people in entertainment who work behind the scenes in lighting, camera operation, sound, costumes, etc who are incorporated. They easily make under 50K.

There are also tradesmen who are incorporated. Some of them will make under 50K profit.

[ladymuck]

Hardly. How many of those you've listed are going to be incorporated?

My local hairdresser salon owner is incorporated. The stylists themselves may not be - not sure if they're working on a 'rent a chair' basis or employed.

[MPwannadecentincome]

When the Govt announced self employed Coronavirus support it was restricted to profits of upto £50K per annum. Strange the number is the same even though the business model is different, self employed don't pay Corp Tax... somebody somewhere in the civil service has a 50K magic number somewhere?

[AtW]

somebody somewhere in the civil service has a 50K magic number somewhere?

Most likely a focus group confirmed amount that most people think is the "rich mark", plus 40% tax kicks in there, HMG does not want to help people who can afford to pay so much tax in the first place.

[MPwannadecentincome]

Well, in this case this is profits, which would be after PAYE costs and pension, but yes you could be right on the what people perceive as being well off.

I predict some large pension payments will be made from 2023 onwards to offset profits to keep the corp tax liability to the minimum.

[AtW]

I predict some large pension payments will be made from 2023 onwards

Not after that Autumn's Budget of DOOM...

[Whorty]

I predict some large pension payments will be made from 2023 onwards to offset profits to keep the corp tax liability to the minimum.

Why are contractors not doing this already? Money left in the company bank account is earning diddly squat interest, much better to put it into a pension - you will get a better return, and you save corp tax.

[Andy2]

if you want to pay less tax
work only 8-9 months a year