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.”