Small businesses welcome corporation tax rate changes

Small businesses welcome corporation tax rate changes according to the CBI’s Director-General, Carolyn Fairbairn.

“The reforms to business rates, which are aimed at taking more small firms out of the regime and the decision to link uprating to CPI inflation rather than RPI inflation are changes the CBI has lobbied for over a long period of time.”

Mike Cherry, policy director at the Federation of Small Businesses, also spoke in favour of the changes. He said: “The calls for the tax system to be made simpler for small businesses and the self-employed have been listened to.”

Mr Cherry said he was pleased to see more reforms to the rates, long a bugbear of small business. He said they would take many smaller firms out of the system entirely.

IN Accountancy are a firm of Chartered accountants in Stockport that specialise in looking after small businesses.

Sarah Harkness, MD at IN Accountancy, said: “There will be changes to the rate over the next few years.  The main rate of corporation tax is currently 20% and this rate will continue for the financial year that started on 1 April 2016.

“In the following years the rate of tax will fall as follows:

  • 19% for the Financial Years beginning on 1 April 2017, 1 April 2018 and 1 April 2019.
  • 17% for the Financial Year beginning on 1 April 2020.

The 17% rate from April 2020 is a reduction of 1% from the rate previously announced by the Chancellor in his Summer Budget in 2015.”



Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy

    Related articles

    tax on interest income
    Limited Companies

    Maximise Your Tax-Free Savings Interest Income: UK Guide for 2024

    Over the last year UK savers have finally been in a position to earn some interest on their savings, but how is interest income taxed, and how can you maximise the tax free element of what you receive? 🤔
    If you meet certain criteria or have flexibility in how you structure your income, then you can potentially enjoy up to £18,570 of your income completely tax-free!! 🥳

    Read More »
    time to pay arrangement
    Limited Companies

    Time to Pay Arrangements: A Lifeline for Owner-Managed Businesses

    Are You Struggling to Meet Your Tax Obligations?

    More than 30,000 UK businesses were involved in some kind of insolvency action in 2023, which was an increase of more than 50% compared with 2021 according to an article in the Guardian earlier this year.

    And the economic outlook would suggest that despite the fact that we are no longer in recession, 2024 and 2025 will be a challenging year for UK small business.

    With this in mind we have prepared the following guide and associated video to help you understand what your options are with regards to agreeing what is known as a ‘Time to Pay’ arrangement with HMRC.

    Read More »

    Find out how we can help?

    Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.


    Let’s start a conversation 

      Subscribe me for updates and news from In Accountancy