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RE: Zero Tax on Small Businesses to Boost the Economy - A Crazy Idea?
There are already a lot of tax schemes to encourage investment in the UK in small businesses such as 'SEIS' and 'EIS'.
In practice in the UK, if you're starting a small business and register as an LTD company the first £680 of profit a month is basically tax free (a tax-deductable salary to yourself that you don't pay income tax or national insurance on). That's assuming the business is your only job/ source of income. If you run a low cost business, like a consultancy, you also have things like flat rate VAT refunds that increase your turnover.
Beyond that, corporation tax is not that bad, one of the lowest rates in Europe. This is speaking as a small business owner who is happy with the status quo.
Yet it still seems to be cited as a major reason for small business failure. I think the only way to know for sure is to trial it and get some pilot data.
Definitely! I can only speak from my experience with a more tech focused business. I imagine someone with a more traditional business employing many workers may have a completely different experience.
Right. Thanks.
zero tax on start ups - ambitious but tempting
I often watch the Dragon's Den seems that aside from the tax (dont really know anything about UK's case) most start up owners don't do their homework and lack the right business mindset - except for not all of them go to the Dragons to borrow moneyyy.
As for zero tax for start ups yes please - all over the world