Source: accountancy age.com 9 January 2018
Research by Moore Stephens shows that businesses with turnover greater than £1bn are paying a 20.1% effective rate of corporation tax compared to SME’s 21.7%.
Moore Stephens has urged the government to consider reintroducing the corporation tax discount of 25% on the full rate that SMEs recently enjoyed.
Mike Cooper, a partner at Moore Stephens, said that “A corporation tax discount for the SME sector would be timely to further encourage the dynamic enterprise culture the UK aspires to and support the much needed drive for growth.
Source: HMRC Press Release 3 July 2017
The Office of Tax Simplification (OTS) has responded to calls for UK Corporation Tax to be modernised and simplified in its report Simplification of the Corporation Tax Computation published 3 July 2017.
The report looks at four broad themes
- simpler tax for smaller companies
- aligning the tax rules more closely with accounting rules where appropriate
- simplifying tax relief for capital investment
- a range of further issues affecting the largest companies
Source: kpmg.com press release 4 July 2016
“Whilst from a policy perspective it may help make the UK a “super-competitive economy”, a reduction in rates will likely not be enough on its own to drive FDI (Foreign Direct Investment). KPMG surveys of clients have consistently concluded that companies want stability, predictability and certainty, both in economic (including tax) and political terms. Whilst the current political and economic volatility prevails and uncertainty over a post-Brexit UK remains, companies may well be reluctant to invest in the UK.”