Another backtrack by Gordon

[Jaglover]

As well as Sipps (already being discussed) the remains of the Zero per cent tax band for small companies has been abolished.

Encouraged by this tax break hundreds of thousands of small businesses incorporated.

Last tax year this was restricted to only profits that were 'retained', now it is gone completely.

[Eric Mc]

It was a stupid move in the first place. No we have the worst of both world - silly tax rules on Non Corporate Dividends AND no Zero CT band.

[Jaglover]

Oh I quite agree Eric, it was a silly tax rule, but the point is he should have realised that in advance rather than change his mind after a couple of years.

A tax system needs stability.

[JonRB]

You're missing the point. Thousands of Sole Traders and Partnerships had for years been 'avoiding' Corporation Tax and Employer's NI so a Honey Trap was set to get them to incorporate, and the trap has now been sprung.

Or am I being cynical?

[axeman30]

JonRB said:

You're missing the point. Thousands of Sole Traders and Partnerships had for years been 'avoiding' Corporation Tax and Employer's NI so a Honey Trap was set to get them to incorporate, and the trap has now been sprung. Or am I being cynical?

No I'd say youv'e hit the nail on the head there.

[chris watton]

JonRB said:

You're missing the point. Thousands of Sole Traders and Partnerships had for years been 'avoiding' Corporation Tax and Employer's NI so a Honey Trap was set to get them to incorporate, and the trap has now been sprung. Or am I being cynical?

You're right, I was 'victim' to this now closed loophole this year.

[mojocvh]

Employer's NI--just had to phone my accountants to double check the figures

MoJo

[axeman30]

mojocvh said:

Employer's NI--just had to phone my accountants to double check the figures MoJo

and you do know where Mr Brown is looking for an extra 3% tax don't you? That's right, a compulsory pension scheme for all employees not already in an occupational scheme......3% paid in by the employer.

Hmmm which type of company employs over 60% of the UK workforce.....but rarely has a pension scheme organised for it's workforce? small companies of course.

If you feel a draught on your behind......don't worry it's just Gordon pulling your pants down ready for a shafting.