‘The number of newly created companies has risen for a second consecutive year – but the surge in start-ups could be being driven as much by a desire to avoid tax as an increase in entrepreneurial activity. Figures from Companies House show the number of new companies created annually is now at its highest level since before the financial crisis, with 396,000 companies created in the year to March 2011, up by 9.4% on the previous year.
‘While an increase in company creation is often cited as evidence of an improved entrepreneurial culture, accountants Wilkins Kennedy said a considerable number of the latest wave of companies could have been set up to achieve tax efficiency for the business owners.’
‘The number of newly created companies has risen for a second consecutive year – but the surge in start-ups could be being driven as much by a desire to avoid tax as an increase in entrepreneurial activity. Figures from Companies House show the number of new companies created annually is now at its highest level since before the financial crisis, with 396,000 companies created in the year to March 2011, up by 9.4% on the previous year.
‘While an increase in company creation is often cited as evidence of an improved entrepreneurial culture, accountants Wilkins Kennedy said a considerable number of the latest wave of companies could have been set up to achieve tax efficiency for the business owners.’
