After months of uncertainty and indecision, the government has finally settled on its proposed increase to corporation tax. As of April 1st, the standard rate for profitable companies will increase from 19% to 25%, and could therefore have a significant impact on businesses across the UK. Although this rate only applies to businesses making a profit of £250,000 or more – with marginal relief being provided for those making less than that and a small profits rate of 19% being afforded to those making under £50,000 – we felt it necessary to give our members some advice for how they can prepare.
Financial expert, Colin Smith, currently the CFO of D3O, gave us his opinion on the current financial climate and shared his tips on how CEOs and founders can manage the looming corporation tax increase. He claimed that all the majority of business leaders want is a “stable, predictable tax environment which encourages innovation and the creation of jobs, and makes it easy to understand how much tax needs to be paid.”
Unfortunately, the government have failed to deliver in this regard recently, with their indecision surrounding changes to NI and corporation tax making the law ever more complex. With that in mind, here are Three Things – three pieces of clear, actionable advice you can implement today – Colin suggested to help business leaders prepare for the upcoming corporation tax hikes: