Setting up a business to become 'more attractive'

Date: 3rd February 2012

Posted by James Curtis

The UK's business tax system is to change for the better with regard to setting up a business, it has been claimed.

Jon Norris, editor of Freelance Advisor, has said that more people will be inclined to form a limited company once the changes come into effect at the start of the new tax year.

"I think in April, the corporation tax is dropping to the same level as income tax. So what that basically means is it's going to become an even more attractive proposition to form a limited company, because the rate of basic tax you'll be paying will be the same," he explained.

Mr Norris said that the move could see sole traders tempted into forming limited companies, in a bid to reduce their red tape burden.

"The accountants we talk to say they're going to push their sole traders to form limited companies, which would put them outside new agency workers' regulations, which is a good thing," he added.

Posted by Jacob Williams