Taxation on small companies - thanks Gordon

I have just been reading a newletter from Gilberts Chartered Accountants (based in St Albans), which notes that in the infinite wisdom of Gordon (Brown, clearly), small companies will pay higher tax rates than bigger companies.

What a bummer for the small business! Gilberts highlights the possibility that it could be beneficial for many small limited companies to go back to their original status as a sole trader. They are suggesting that at higher profit levels, incorporation generally remains worthwhile. However, for those businesses trading as a limited company showing a profit of £50,000, a saving of nearly £4000 could be made - and more if some of the profits are left in the company.

Gilberts do point out that there are other benefits to be gained from trading through a company, not just in terms of tax, so it is worth talking to your accountant about you particular circumstances.

Following this public service announcement, I would like to note that St Albans is a very interesting city with the oldest pub in England, which is called The Fighting Cocks.