18% Rate rise

[AtW]

It sounds like the taper is not much use sadly. According to this:


“The accounts for XYZ Ltd show total profits (taxable and augmented profits) of £190,000 for the year to 31 March 2024. The company has no associated companies. Marginal relief applies because profits fall between £50,000 and £250,000.

Calculations show that XYZ Ltd is entitled to £900 of marginal relief. This has the effect of slightly reducing the rate of corporation tax payable on all profits by 0.48% to 24.53%.

Therefore, instead of paying 25% on profits of £190,000 (£47,500), the company pays 24.53% of £190,000 (£46,600).”

It’s the same (tulip) way previous (under Brown, later under Osborne rates weee unified so no need for taper) taper operated - it was designed to go up much quicker than ine would assume, very nice con, but at least it started at 300k and upper level was high, now it’s total bulltulip at 50k

[hugebrain]

The corporation tax rate is tapered between £50,000 to £250,000

only above £250,000 is it 25%

It sounds like the taper is not much use sadly. According to this:


“The accounts for XYZ Ltd show total profits (taxable and augmented profits) of £190,000 for the year to 31 March 2024. The company has no associated companies. Marginal relief applies because profits fall between £50,000 and £250,000.

Calculations show that XYZ Ltd is entitled to £900 of marginal relief. This has the effect of slightly reducing the rate of corporation tax payable on all profits by 0.48% to 24.53%.

Therefore, instead of paying 25% on profits of £190,000 (£47,500), the company pays 24.53% of £190,000 (£46,600).”

[AtW]

The corporation tax rate is tapered between £50,000 to £250,000

only above £250,000 is it 25%

It was FAR better under Gordon Brown -

“For companies with profits between £300,001 and £1.5 million, a system of relief operates, such that the average tax rate for these companies is gradually brought into line with the main rate of corporation tax (which applies to profits above £1.5 million per year). Kenneth Clarke announced in the November 1996 Budget that the small companies’ rate would be reduced to 23% from April 1997, but this was superseded by Gordon Brown’s July 1997 Budget announcement of a cut to 21%, which was to be backdated to April 1997.”

He even had 10% rate!

Source - https://ifs.org.uk/sites/default/fil...8/08chap11.pdf

So 20 years later with massive inflation taper relief starts at 50k

[eek]

i was actually. Did the corporation tax just go from 19% to 25%? If it did, does that mean I need to charge 8% more to break even?

But feel free to add some banter instead if you don’t know the answer.

The corporation tax rate is tapered between £50,000 to £250,000

only above £250,000 is it 25%

[hugebrain]

33% or you'll walk?

I'm assuming you're not after serious responses given you've posted in General.

i was actually. Did the corporation tax just go from 19% to 25%? If it did, does that mean I need to charge 8% more to break even?

But feel free to add some banter instead if you don’t know the answer.

[WTFH]

Since we don't know your finances we can't answer.

When has that every stopped us before?

[Pondlife]

33% or you'll walk?

I'm assuming you're not after serious responses given you've posted in General.

[d000hg]

I am asking for 33%, but was just curious to know what the breakeven point is since I’m not very good at percentages.

Since we don't know your finances we can't answer.

[hugebrain]

No ambition man.

I am asking for 33%, but was just curious to know what the breakeven point is since I’m not very good at percentages.

[WTFH]

... the same money?...

No ambition man.

[SueEllen]

You are getting 5% like everyone else.

[hugebrain]

Is this the amount I need to keep earning the same money?

8% for the corporation tax increase (81/75 - 1) and 10% for inflation.