Firms in the UK paying an extra £2.4bn a year

Changes to small companies tax regimes has resulted in over 500,000 small firms in the UK having to pay an extra £2.4bn a year, according to Tory MP Justine Greening.

 

The shadow Treasury economic secretary has stated that the abolition of the zero starting rate of corporation tax in 2006 has resulted in the taxation of businesses that have profits below £10,000 at a rate of 21 per cent.

The Labour government are also planning to increase the small companies rate from 18 per cent in 2006/07 to 22 per cent in 2010, adding to the tax burden felt by small firms.

‘At a time when 1 in 10 businesses are reported as being on the brink of failure, these figures reveal the truth about how Gordon Brown has treated Britain’s small businesses over the last 3 years,” said Greening.