ICAEW wants SME tax changes made clear
The ICAEW fears the government is about to put up taxes for small businesses and wants urgent clarification.
Link: ICAEW: Interest rate rise threatens SMEs
It said proposals set out in the pre-Budget report on owner mangers of small companies looked ‘likely’ to increase tax paid by owner managers on profits extracted from their companies.
But ICAEW admitted ‘confusion’ over the proposals and called for clarification. The pre-budget statement said: ‘The government will bring forward specific proposals for action in Budget 2004, to ensure that the right amount of tax is paid by owner managers of small incorporated businesses on the profits extracted from their company.’
It has written to the paymaster general expressing concern over the proposals. Mark Lee, chairman of the Institute’s Tax Faculty, said: ‘We are concerned about the uncertainty that this announcement is causing small incorporated businesses and their advisers. Detailed proposals need to be published as a matter of urgency.’