SMALL BUSINESSES FEEL THEY ARE GETTING A RAW DEAL ON TAX
September 2 2016.



SMEs become liable for corporation tax when they change from being a sole trader to a limited company, yet many business owners are struggling to calculate the correct level of tax due, finds a study by FreeAgent.


Seven in ten (71 per cent) UK micro-business owners in the UK feel that larger businesses benefit more from the tax system than they did.

Ed Molyneux, CEO and co-founder of the company, says that the European Commission’s decision to order Apple to pay a record-breaking €13 billion (£11 billion) in back taxes to Ireland will be welcome news for freelancers and micro-businesses.

He says, ‘We know that corporation tax is often a stumbling block for micro-business owners to deal with, especially when they change from being a sole trader to a limited company. It can be a very confusing thing to understand, and many of them have to work very hard to calculate the correct amount to pay, with the shadow of the tax man looming if they get things wrong.

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