Budget 2007: A budget for business?
Many small to medium sized businesses around the UK are more than a bit miffed about the March 2007 budget. They are simply going to have less after-tax income after April 2009, as the small firm tax rate increases to 22%.
Take a company that is making the upper limit of profit allowable in the small company tax bracket, £300,000 a year. The government will be taking £66,000 of that, up from £57,000. That means the company will be paying over 16% more corporation tax than they are currently.
On the plus side, the government has introduced a new Annual Investment Allowance. Under this new scheme, any business can offset against pre-tax profits expenditure up to £50,000 on equipment, plant & machinery. Sure, if you were able to claim the maximum available, you would pay £1000 less in corporation tax in the example above.....
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