Anything in the budget for small business

[aceparts_com]

I thought it may be an idea to mention anything that may be good/bad news for us?

[Eric Mc]

Not much that was obvious - although details of Gordon's Budgets often emerge days after the Budget speech itself.

The abolition of the £10,000 Zero Rate Corporation Tax band will affect many small companies, as will the abolition of the 19% Corporation Tax charge on dividend payments.
But he had flagged up these changes in his Autumn Statement back in November so they were not a surprise.

[_dobbo_]

I make a reasonable amount of additional income from dividends, what's the deal with the 19% charge that's been abolished? Better for shareholders or worse? Normally i'd research this but i'm really snowed under at the moment, sorry!

[srebbe64]

My accountant sent me his regular summary of the budget. One thing which intrigues me was the following:

"Business Tax. Mr Brown said that since 1997 Corporation Tax has been cut from 33p to 30p, small business tax from 23p to 19p and Capital Gains Tax for long term business assets from 40p to 10p. The government committed itself to discussing the corporate tax system with businesses in order to keep it internationally competitive."

Call me cynical, but the above (doubtless written by a PR company) indicates that he's got Taper Relief in his sights.

[JonRB]

Doesn't look like much of a summary to me - looks more like a cut & paste job from a Treasury statement.

I'd expect my accountant's bulletin to interpret the budget and tell me how it affects me, drawing my attention to what has changed in the budget both positive and negative.
Fortunately mine does which is one of the reasons why I stay with him.

>> Edited by JonRB on Thursday 23 March 14:26

[roadsweeper]

Eric Mc said:

Not much that was obvious - although details of Gordon's Budgets often emerge days after the Budget speech itself. The abolition of the £10,000 Zero Rate Corporation Tax band will affect many small companies, as will the abolition of the 19% Corporation Tax charge on dividend payments. But he had flagged up these changes in his Autumn Statement back in November so they were not a surprise.

Would you mind explaining this further please Eric?

Thanks.

[_dobbo_]

roadsweeper said:

Eric Mc said: Not much that was obvious - although details of Gordon's Budgets often emerge days after the Budget speech itself. The abolition of the £10,000 Zero Rate Corporation Tax band will affect many small companies, as will the abolition of the 19% Corporation Tax charge on dividend payments. But he had flagged up these changes in his Autumn Statement back in November so they were not a surprise. Would you mind explaining this further please Eric? Thanks.

I've worked out this bit:

"The abolition of the £10,000 Zero Rate Corporation Tax band will affect many small companies, as will the abolition of the 19% Corporation Tax charge on dividend payments."

Previously edit SOME companies paid little or no corporation tax on profit up to £50k. Now this profit is taxable at the 19% rate.

Assuming you do make £50k profit or more, good old Gordon has just nicked £10k from you. Ouch.


>> Edited by _dobbo_ on Thursday 23 March 15:18