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Alternative Finance blog

Does Boris Tax Cuts Affect Start-ups

Does Boris Tax Cuts Affect Start-ups

19 days ago


Boris Johnson plans to scrap the pledged tax cut to corporation tax and spend the money on the NHS.

As an equity & debt crowdfunding aggregation platform representing thousands of small businesses and start-ups, we welcome Boris Johnson’s decision for tax cuts in this area to fund the NHS.

Corporation tax is currently at 19% and was pledged to be reduced to 17%. The saving of the estimated £6B is much needed for the NHS and the majority of this money will not be taken from small businesses but large corporations.

Labour on the other hand wish to increase corporation tax to 26% which could stifle business. There has to be a middle ground which promotes big business.

As a country with many small businesses and start-ups it would be nice to see the return of the corporation tax allowance of £10,000 and perhaps an increase in corporation tax.

We understand the issue here is to attract big business to the UK which in-turn brings jobs and in-turn income tax for the government. However, we know this is not working that well as large corporations base their operations in the cheapest corporation tax countries.

For example, Ireland's taxation rate for corporations is 12.5%. In addition, Ireland only charges a corporate tax rate of 6.25% for revenue tied to a company's patent or intellectual property. This would explain why Googles European HQ is in Ireland.

According to the BBC Mr Johnson said business helped fund the nation's number one priority by "creating the wealth that actually pays for the NHS".

He said his party "believe emphatically in fiscal prudence" and had decided against going ahead with a further cut in corporation tax.

We agree that this is a sensible decision and that he should also look at the corporation tax allowance to support smaller businesses which are indispensable to this country.

 



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