Small business taxes still on the rise
Tuesday, January 29th, 2008Don’t think that Alistair’s partial u-turn on CGT means that small businesses are being treated well by this government.
In each of the last three budgets, the government has steadily added to the tax burden of small businesses, and lightened the load on larger corporations. Take a look at this illustration:
Profit (net and pre-tax): £11,000
Fixed assets brought forward: £6,500
Depreciation at: £1,625
In 2010, the corporation tax for this business will be: £2,228
Compared to their corporation tax total in 2005 of: £184
Wow! That is an increase of over 1000 percent!
If you applied a similar tax calculation for a business 1000x larger, you would see that their tax bill actuall REDUCES by over 2% over the same time period. See the actual figures over at Figurewizard.com (thanks Joe for that).
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