The Business Exchange Swindon & Wiltshire Edition 21: Oct/Nov 2015 - Page 4

BUSINESS NEWS O TAX RATE CHANGES AFFECTING YOUR BUSINESS I’m sure you are aware of the taxation bombshells announced in the last Budget which could soon have a significant impact on many small businesses. For more than ten years directors and shareholders have enjoyed relative calm and certainty when it comes to tax – but this represents significant change. In general, the rules have become more complex and will now result in increased overall taxation payable by most private companies and their shareholders. It will also add another consideration to the decision of sole traders and partnerships regarding whether to incorporate the business. It is important your affairs are structured now and how you draw your income from your business is pro-actively managed to avoid falling foul of the changes. I’m encouraging all entrepreneurs to look at a new strategy to meet needs for the future. There’s no blanket approach that can be applied here, as there could be other tax reliefs available to you, depending on the circumstances. The new rules will come into force from 6 April 2016 so we are currently in transition with existing tax rules applying until that date. For many, this offers a one o