Do You Know Your Corporation Tax Bill?
Wellden Turnbull are advising local businesses to check their corporation tax bill after research revealed a large number of business owners have no idea how much they should be paying.
In a survey conducted by a leading bank, 35 per cent of businesses confessed to not being familiar with recent changes to tax legislation and the impact it will have upon their financial status.
Simon Spevack comments: “In this year’s Budget the Chancellor seemed 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%.
“This took effect from 1 April 2007 however almost six months later it seems not everyone has taken these changes on board.
“However it’s vital that SME owners and managers across the region get to grips with these changes to ensure they are paying the correct amount of tax. Naturally we are able to help anyone who is unsure of their tax rates.
“Of course the alternative would be for this tax regime to be simplified in order to help the ever growing number of SMEs. This seems unlikely as tax rules are only getting more and complicated which is resulting in this sort of confusion.”
As part of the changes the small companies rate will further increase 21% in 2008 and to 22% in 2009.
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