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Businesses 'could be damaged' by tax decision
30/03/2007
Chancellor Gordon Brown's Budget decision to increase the corporation tax rate will be damaging to businesses, according to a survey of small company owners by the Forum of Private Business.
A total of 82 per cent of small business owners suggested that the announcement would have a negative impact, while less than six per cent indicated that a reduction in the main tax rate would be of benefit to them, the research states.
Some companies affected financially by the Budget may have to take out business loans to boost funds.
"Only 5.5 per cent said a cut in the main rate of corporation tax from 30 to 28 per cent would be very helpful, whilst 51.6 per cent said it wasn't relevant to their business," said Lynn Willrich, owner and financial director of DJ Willrich, an audio-visual and multimedia specialist.
"We feel as though we are paying the price for big companies getting a tax break," she added, hinting that smaller businesses have been forgotten by the government.
A total of 82 per cent of small business owners suggested that the announcement would have a negative impact, while less than six per cent indicated that a reduction in the main tax rate would be of benefit to them, the research states.
Some companies affected financially by the Budget may have to take out business loans to boost funds.
"Only 5.5 per cent said a cut in the main rate of corporation tax from 30 to 28 per cent would be very helpful, whilst 51.6 per cent said it wasn't relevant to their business," said Lynn Willrich, owner and financial director of DJ Willrich, an audio-visual and multimedia specialist.
"We feel as though we are paying the price for big companies getting a tax break," she added, hinting that smaller businesses have been forgotten by the government.