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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