Corporation Tax: Autumn update
A few things are topical regarding Corporation Tax (CT).
Unified rate of tax at 20%
From April 2015 there is to be a unified tax rate for corporate businesses. This has been on the agenda for a while but HMRC guidelines have now been updated to officially reflect this. Essentially, the main CT rate will drop by a further 1%, equaling the current rate for companies with small profits, being 20%.
This is expected to bring forth good change with less administration and the government is promising to keep corporate tax rates low if they win the election next year.
The future of CT
This current rate of CT is one of the most competitive in the G7 so it is good news for incorporated businesses.
The government is also working towards building and developing a business tax system that provides long-term stability and encourages investment so whilst any further tax cuts below the 20% mark would be unlikely in the coming year or two, it’s hard to tell.
Figurit keep our clients up to date with tax news on our blog and monthly newsletter so keep an eye for topical information to help your business.
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