LIFT SMALL FIRMS OUT OF CORPORATION TAX

Corporation tax may be scrapped entirely for some small businesses under plans unveiled by Angela Knight, the newly appointed chairwoman of the Office of Tax Simplification.

In a report into small company taxation, Knight suggests that instead of a company paying corporation tax, its shareholders could pay income tax on the profits of the business.

This would apply to so-called micro-businesses with up to ten employees.

Knight suggests this could make tax payment simpler for businesses which distribute all of their profits to shareholders. 

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