Half of entrepreneurs in the dark on 50% tax rate, says Tenon

Almost half of the entrepreneurs in a Tenon poll said they have no idea how
to react to the 50% top rate of tax looming on the horizon.

The Tenon Entrepreneur Forum found many entrepreneurs have not yet considered
these issues at a time when they should be preparing for the new tax rate, which
takes effect in April 2010.

Entrepreneurs will be hit hardest by next year’s rise in the top rate of
income tax as they are 26 times more likely than the average person to earn over
£150,000, the mid-tier firm reported.

Additionally two in five business owners admitted that they were unaware they
would be affected by the reduction in tax relief on pensions for those earning
over £150,000.

Andy Raynor, chief executive of Tenon said:

“The government aims to punish those responsible for the financial crisis but
has hit the group best placed to lead the way out of recession, raising yet more
questions about the government’s commitment to small businesses.

“This rise in income tax is self-defeating. It disincentivises wealth
creation and undermines owners trying to build up their businesses – the very
people who would provide a boost to the economy.”

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