Tories turn on Labour for soaring tax bill facing small business
Changes in the small companies tax regime have sent the tax liabilities of
500,000 of Britain’s smallest companies soaring a total of £2.4bn by the end of
the next tax year, according to Tory accountant MP Justine Greening.
The shadow Treasury economic secretary said this was caused by the abolition
of the zero starting rate of corporation tax in 2006, resulting in the
taxation at 21% of companies with profits below £10,000 This amounts to £900m in
tax for which they were previously exempt.
She said data in reply to questions she has put to the Treasury also show a
quarter of a million companies with profits of £10,000 to £50,000 face an
increased potential bill totalling £1.5bn.
And both groups face the increase in the small companies rate from 18% in
2006-07 to 22% in 2010.
Greening said: ‘At a time when 1 in 10 businesses are reported as being on
the brink of failure, these figures reveal the truth about how Gordon Brown
has treated Britain’s small businesses over the last 3 years. It is as if he
has tried to tax our smallest companies out of existence.’