Small companies braced for tax bombshell

The Forum of Private Business is warning that the Budget is likely to heap an unfair tax burden onto many smaller firms.

Small companies braced for tax bombshell

The FPB is concerned that its members will pay for the tax breaks the government plans to hand to big businesses.

“The FPB is urging the Chancellor to radically rethink many of his ideas, in particular his tax plans, which specifically disadvantage smaller businesses,” said policy representative Matt Goodman. “Issues such as excessive legislation, unfair competition and the dearth in work-ready, skilled employees leaving education must also be addressed as a matter of priority.”

Research carried out by the FPB reveals that 97% of respondents think recent tax changes have made the UK a worse place to do business.

In his Pre-Budget Report and the Comprehensive Spending Review of last October the Chancellor warned that small firms’ corporation tax contributions will increase from 19 to 22% from this April. However, the higher rate of tax to be paid by large firms will be reduced from 30 to 28%. In addition, Capital Gains Tax taper relief will be brought to an end.

Chancellor Alistair Darling is due to announce the Budget on March 12.

Check Also

ProCook partners with Life’s a Beach for local canal clean

Volunteers from Gloucester-based kitchenware brand, ProCook joined their long-term charity partner Life’s a Beach on …