There should be a change in the corporation tax system to give a tax free "allowance", perhaps in a similar way as an individual has a personal allowance, or by a % of turnover calculation. The general idea could be implemented in a few ways and probably with a few provisos attached, but the "essence" of this should be workable.

At the moment a small company operating with a very small profit margin, only just above break even, has to pay tax on that profit no matter how small. This makes it difficult for small companies to make capital repayments against loans or mortgages, which are not tax deductable.

Why is this idea important?

This would encourage investment and growth for small businesses and help companies struggling to keep their heads above water during difficult economic times.

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