Figures from Companies House show a drop of almost a fifth to 25,308 in the number of new companies formed in April compared to figures published last year.
The decline in incorporations provide the first evidence that the closure of a loophole which emerged after last year’s Budget introduction of a zero percent corporate tax rate is slowing the tide of company formations.
‘These businesses really can’t afford to damage their profits by incorporating and paying more tax,’ Kevin Walmsley, partner at Wilkins Kennedy told the FT.
‘By not incorporating though, the owners of these businesses could be exposing themselves to greater personal risk.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states