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Coproration Tax To Rise to 25%

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    Coproration Tax To Rise to 25%

    Corporation Tax to Rise to 25% but Small Firms Spared

    Anyone else seeing that headline may be forgiven for thinking "Phew, dodged a bullet there"....

    ... but read the small print: "small businesses with profits of £50,000 or less will continue to be taxed at 19 per cent."

    WTF is their idea of a small business??

    Still, with the IR35 changes we'll be lucky to get anywhere near £50k profit

    #2
    Small business for Tories is any business that can't give them cushy chairmapship/directorship after they get booted from their cushy MP seats.

    50k won't be enough to cover part time 1 day a week "work" in those positions.

    Comment


      #3
      Must admit when I first heard it I thought it would revert to the old small profits threshold of £300k. I will be very interested to see the tapering schedule up to £250k. Assuming it is progressive, and not a step change at the threshold, then I guess most of us will be somewhere in the 22% range assuming 100k profits or so. So it could be worse, or just extra incentive to load the pension up.

      Comment


        #4
        https://www.gov.uk/government/statis...tical-release-

        Under 50 employees it seems.

        html#:~:text=there%20were%205.82%20million%20small ,of%20the%20total%20business%20population

        The UK private sector comprises largely of non-employing businesses and small employers, as shown in Table A. SMEs (small and medium-sized enterprises) account for 99.9% of the business population (5.9 million businesses). At the start of 2019:
        • there were estimated to be 5.9 million UK private sector businesses
        • 1.4 million of these had employees and 4.5 million had no employees
        • therefore, 76% of businesses did not employ anyone aside from the owner(s)
        • there were 5.82 million small businesses (with 0 to 49 employees), 99.3% of the total business population
        • there were 35,600 medium-sized businesses (with 50 to 249 employees), 0.6% of the total business population
        • a further 7,700 businesses were large businesses (with 250 or more employees), 0.1% of the total business population
        "If you didn't do anything that wasn't good for you it would be a very dull life. What are you gonna do? Everything that is pleasant in life is dangerous."

        I want to see the hand of history on his collar.

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          #5
          Bearing in mind that it won't kick in for another 2 years, if I read it correctly.
          In Scooter we trust

          Comment


            #6
            Originally posted by The Spartan View Post
            Bearing in mind that it won't kick in for another 2 years, if I read it correctly.
            Well wedding, events, entertainment and marketing businesses won't be making sufficient money until about then....
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #7
              Originally posted by Great Parks View Post
              Corporation Tax to Rise to 25% but Small Firms Spared

              Anyone else seeing that headline may be forgiven for thinking "Phew, dodged a bullet there"....

              ... but read the small print: "small businesses with profits of £50,000 or less will continue to be taxed at 19 per cent."

              WTF is their idea of a small business??

              Still, with the IR35 changes we'll be lucky to get anywhere near £50k profit
              To be fair, he did say that it would be tapered up from 19% to 25% with the more profit that the company makes. So I'd expect a company making 70-80k profit to be paying somewhere in the low 20s rather than 25%

              That said, Ive not read any more on this and only just watched the budget speech so maybe I've misunderstood..

              Comment


                #8
                Originally posted by Snarf View Post
                To be fair, he did say that it would be tapered up from 19% to 25% with the more profit that the company makes. So I'd expect a company making 70-80k profit to be paying somewhere in the low 20s rather than 25%


                Yes, low 23-24

                Comment


                  #9
                  Originally posted by Great Parks View Post
                  WTF is their idea of a small business??
                  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.

                  Originally posted by MaryPoppins
                  I'd still not breastfeed a nazi
                  Originally posted by vetran
                  Urine is quite nourishing

                  Comment


                    #10
                    Originally posted by AtW View Post



                    Yes, low 23-24
                    If it's tapered rather than stepped it will be linear, nobody has the nous to understand anything else.
                    Originally posted by MaryPoppins
                    I'd still not breastfeed a nazi
                    Originally posted by vetran
                    Urine is quite nourishing

                    Comment

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