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Lord Saatchi calls for small business tax cuts

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17th Jun 2014
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Saatchi & Saatchi founder Lord Saatchi has called on the government to offer major tax cuts to the UK’s small firms.

In an article for The Telegraph  the former Conservative party chairman said the government should abolish corporation tax for small businesses to allow firms to “challenge cartel capitalism” and remove capital gains tax for investors in small firms.

Lord Saatchi, who is now the chairman of the Centre for Policy Studies (CPS), said the “call to arms” tax measures would be to the benefit of everyone by allowing smaller firms to better compete with larger competitors.

He said the policy would show “how the awesome power of taxation can be used to the benefit of everyone”.

“The Policy, as I call it, would therefore abolish corporation tax for 90 per cent of UK companies, reduce the deficit faster than predicted by the Office for Budget Responsibility (OBR) , expand employment faster than it predicts, increase competition, challenge cartel capitalism and let millions of people grow tall.

“The nation as a whole will benefit from a change in culture as big as Right to Buy in the Eighties; there will be greater economic growth and lower unemployment than currently forecast by the OBR, more competitive market places, and more freedom and independence from Big Government and Big Companies,” Lord Saatchi said.

In a new report, celebrating the 40th anniversary of the Margaret Thatcher-founded think-tank, the CPS calls on the government to stop imposing corporation tax on firms with fewer than 50 employees.

According to the report, just 0.8% of all UK businesses are classed as “big” or “medium sized”.

Replies (6)

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By the_Poacher
18th Jun 2014 07:54

What a muppet
Better start sacking my part timers and replacing them with full timers or the self employed. Alternatively I can subcontract that work out to companies abroad, not only a cheap supplier of labour but I get to avoid CT too. Fantastic

Thanks (1)
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By the_Poacher
18th Jun 2014 07:55

What a muppet
Better start sacking my part timers and replacing them with full timers or the self employed. Alternatively I can subcontract that work out to companies abroad, not only a cheap supplier of labour but I get to avoid CT too. Fantastic

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By johnjenkins
18th Jun 2014 09:40

I think

it's a brilliant idea. how come nobody else has thought of it?

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By ireallyshouldknowthisbut
18th Jun 2014 09:45

.

Yes, no taxes for anyone, great plan.

Quite frankly small businesses pay very little tax. 

I know I pay a very small amount by the time I have split the income with my wife, claimed home office, mobile phones and all the rest of it. 

The only thing that irks is employers NI. 

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By Wiganer Elaine
20th Jun 2014 12:49

Time to think outside the box

I think this idea should at least be considered.

Further developments could be that all dividends are taxed at 20% and that the tax on dividends should be deducted by the company and paid to HMRC - maybe every quarter?

A bit like the old "advance corporation tax" but not that as small companies will not pay corporation tax!

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Replying to Wanderer:
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By the_Poacher
25th Jun 2014 19:55

outside of the box
well if you want to think outside the box how about abolishing CT itself and just taxing distributions through a modified form of PAYE

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