Martin Mann explains the key tax consequences for businesses and shareholders alike
One of the key points to come out of the interim report on small businesses prepared by the Office of Tax Simplification (OTS) was the need for businesses to choose the type of entity in which to operate without being disadvantaged from a tax perspective.
For growing businesses a company is often seen as the most tax-efficient vehicle with the attraction of lower rates of tax on profits.
However many businesses which rushed to incorporate during the period where the corporation tax rate was 0% now find that incurring the extra costs and administration burdens in return for a limited tax benefit reduces the advantages of...
