Smaller Companies and Businesses

Smaller companies: Smaller companies, defined as those with profits of less than £300,000 a year, have paid a lower rate, while larger companies have paid more – just as individuals who earn bigger salaries are expected to pay income tax at a higher rate, according to The Independent. Complicated marginal relief rules have offered businesses just above the £300,000 threshold some protection, but in the past at least, larger businesses with deeper pockets always shouldered more of the corporation tax burden. Traditionally, there have been two rates of this tax. That has comprehensively changed under the Coalition Government, as analysis conducted by Prem Sikka, professor of accounting at Essex Business School at the University of Essex, reveals. Business news in pictures In other words, while successive governments have been loudly proclaiming their commitment to smaller businesses, they have been presiding over a corporation tax system that has become vastly more reliant on revenues from these firms. On the basis of Treasury statistics, he calculates that the total amount of corporation tax collectively paid by larger companies fell from £26.3bn in the 2000-01 tax year to £22.5bn by 2013-14, the last year for which figures are available; smaller companies’ payments, meanwhile, rose from £4.4bn to £13.4bn over the same period. (news.financializer.com). As reported in the news.