Corporation Tax U-turn - as expected
This afternoon the PM announced another mini-Budget U-turn, this time concerning corporation tax. What’s the full story?
Despite numerous assurances that the government would press ahead with its tax-cutting measures in the face of strongly negative political and economic reactions, the Prime Minister has decided to row back on her promise to scrap the forthcoming increase to corporation tax in April 2023. This follows the earlier U-turn on scrapping the additional rate of income tax.
As things stand, the main rate of corporation tax will increase to 25% from 1 April 2023. However, company owners may well feel that they can’t take anything for granted given that there is now significant pressure on the Prime Minister to resign.
Related Topics
-
Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
-
HMRC clarifies summer holiday VAT cut
HMRC has published further guidance on the temporary VAT reduction for certain activities during the school summer holidays. The additional detail helps businesses determine which supplies qualify for the relief and, importantly, which do not. What do you need to know?
-
Electronic VAT return and payment due