Struggling Peterborough businesses have discovered they face an extra £10m tax bill as chancellor Alistair Darling's first Budget hits them with a double tax hike.
Owners of more than 10,400 small businesses are facing two tax increases in just 12 months. The first tax slug will hit next month when the corporation tax rate for small firms rises from 20% to 21%, The Evening Telegraph reports.
After being burdened with an extra £5m, the Peterborough businesses have to absorb a second strike just 12 months later when the corporation tax rate for small firms will rise by another 1% to 22% – or another £5m – an average of £500 per company.
Jane Hill, partner in the Peterborough office of Saffery Champness, who calculated the figures on behalf of ET Business, said this was the worst it had ever been for small firms.
‘Over the last few years small firms have received extra help but suddenly, and in one fell swoop, it has all gone,’ she said.
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