The UK has long been praised by businesses for having the lowest rate of corporation tax in the G20 group of countries. It currently sits at 20% and plans are already in place that will bring it down to 17% by 2020. Further cuts could come beyond that too, particularly with Prime Minister Theresa May recently outlining a series of pro-business cuts and additional funding in science, technology, and innovation.
The corporation tax issue has come into focus after Donald Trump revealed he planned to cut US federal tax (the US equivalent of the UK taxation) from 35% to 15%. In response it is expected that the Prime Minister will advise businesses of her plans to cut the rate in the UK further in the future. This is expected to be discussed in the Autumn Statement and at the Confederation of British Industry (CBI) annual conference.
The cuts to corporation tax and additional funding for research and development (expected to include a £2 billion investment each year) are designed to make the UK pro-innovation. This is a very important step, particularly to ensure the UK remains at the forefront of cutting edge industries such as robotics, artificial intelligence, and biotechnology.
All businesses based and operating in the UK need to be aware of the corporation tax rules and their obligations. This is crucial because failure to do so can result in big penalties in the future. Every business should be registered for the tax and submit their information by the set deadlines to avoid issues.
At Brian G. Lonis and Co our team of accountants can help businesses of every size and scale with their corporation tax. We are based in Greater London and tailor services to suit each client, ensuring we meet their needs effectively. As a result we also ensure they get the best value for money, never paying for services they do not need.
If you have any questions we urge you to speak to a member of our team; we are confident they can help.