The Chancellor has moved to
discourage small businesses from incorporating
for tax reasons by increasing the tax they
will pay on profits up to £300,000, from
19% to 20% with effect from 1 April 2007. The
small companies rate will further increase
21% in 2008 and to 22% in 2009.
In contrast the corporation tax rates for
large companies, broadly those with profits
of £1,500,000, are set to be cut from
30% to 28% from 1 April 2008.
Internet link:
Budget notes
|
