TaxCorporate TaxSMEs fear bill for foreign profits change

SMEs fear bill for foreign profits change

Treasury decision to invite only big business to sit on committee looking at tax policy makes smaller companies nervous

Their anxiety was fuelled by the Treasury’s decision last week to invite only
the UK’s largest companies to sit on a new committee looking at tax policy.

Stephen Alambritis, spokesman for the
Federation of Small
Businesses
, said: ‘There’s a relationship between large corporation tax and
small companies’ rates. If it is made more generous for multi-national
enterprises, small companies’ tax rates will possibly go up.’

The Forum of Private
Business
said it was worried about the new tax policy committee’s
conclusions mirroring what happened with corporation tax, when large firms
benefited from a 2% cut while small firms suffered a 2% rise.

‘There is a concern that it will focus on the concerns of multi-national
enterprises and that there is a trend to increase taxes for SMEs.’

He added that the lack of SME representation on the new committee was
another example of the ‘pressing concerns of small businesses being sidelined’.

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