Has anyone had a look at the Labour manifesto?
Just a couple of points that I have picked out: -
- Small company rate of corporation tax to apply to companies with TURNOVER under £300K. I hope that is a typo. If not then even micro companies can look forward to a 26% full rate of corporation tax.
- Tax treatment of income from dividends to be equalised with other income. This suggests that the basic rate of dividend tax will go up from 7.5% to 20%.
Taking these together this suggests that a small company owner who is a basic rate income tax payer will bear an overall tax rate of 40.8%, and a higher rate taxpayer will bear 55.6%. Ouch!