Although no decisions have been fixed ahead of the Autumn Statement, the Chancellor is considering an increase in the headline rate of capital gains tax (CGT) and taxes on company dividends, which is how many self-employed small business owners pay themselves, as part of his plans to fill the £50bn hole in Government coffers.
These would come on top of the Government increasing corporation tax on businesses to 25 per cent from April 2023.
Roger Barker, head of policy at the Institute of Directors, told the Financial Times: “This is going to give the impression that the government does not care about small businesses. The Treasury probably thinks this is a group that earns a lot of money, but small businesses are not big earners as a whole — and they have already been penalised during the pandemic.”
Read more at smallbusiness.co.uk
