UK small businesses hit by record £32bn corporation tax bill last year
Government called on to reduce tax burden on small businesses, which is up 8% on last year
The UK’s small businesses – excluding financial services businesses and North Sea oil & gas companies – paid a record £32bn in corporation tax last year, according to research from Funding Options.
An increase of 8% on the £30bn paid the year before, the extra tax is thought to be compensating for the dramatically reduced tax take from North Sea oil & gas, which fell from a peak of £10.2bn in 2008 to 2009 to just £2.5bn last year.
Conrad Ford, CEO of Funding Options, has called on the government to “ease the tax burden on small businesses”, suggesting an increase to the Annual Investment Allowance to help them invest in new equipment or upgrades.
Currently standing at £200,000 per business per year, The Annual Investment Allowance offers tax relief to businesses to encourage capital investment.
Ford commented: “With the corporation tax take now at record levels the government can now afford to ease the tax burden on small business.
“Small business are an engine of growth and new jobs – the government should be doing all it can to foster a business culture that allows SMEs to thrive.”