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