The chancellor is expected to reverse the special tax status – a zero rate of corporation tax for firms with taxable profits of less than £10,000 – granted to many small businesses back in 2002.
However, this also provoked a rush to incorporate by thousands of self-employed entrepreneurs keen to take advantage of the tax perk.
Now, Gordon Brown is predicted to end the tax break, incurring the wrath of those who feel he will be stifling entrepreneuralism.
The Institute for Fiscal Studies calculates the move has seen the government lose about £1bn a year in lost revenues.
The Budget is on 17 March.
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