---

Osborne calls for Corporation Tax cut

---

Ahead of Alistair Darling's first Budget on Wednesday, the Shadow Chancellor has called for a cut in the main corporation tax rate.

The headline rate is due to be reduced from 30% to 28% from this April, however George Osborne has called for a further cut to 25% to improve the UK's competitive in Europe (we currently have the 4th highest rate in the EU).

The current complex system of expensive reliefs and allowances would be removed to pay for the reduction - as the UK's current budget deficit gives the Chancellor very little room to manoeuvre.

As you would hope, Osborne also called for the Small Companies' Tax Rate to remain at 20%. This rate is due to rise to 21%, then 22% over the next two years - hardly an incentive to "entrepreneurs"!

Try our sister site, Bytestart, for full coverage of Budget 2008.

Published on Mar 10, 2008

Further Reading

Tax pitfalls for owner managed companies in 2008 Joy for contractors as Self Assessment form-filling to become less of an ordeal Tax Rates + Allowances: 2008-9 Budget 2008 - How IT Contractors are affected Osborne calls for Corporation Tax cut Government releases draft "entrepreneurs' relief" legislation Year-end IT Contractor tax saving guide IT Contractor Guide to Corporation Tax

 

---

Contractor Guides

IR35 Overview
IR35 Costs
Contractor Expenses
Start Up Guides
MSC Legislation
Contractor CV Writing
Finding IT Contracts
IT Contractor Banking
Income Shifting