The idea
Has anyone noticed that an entrepreneur is taxed twice on start up capital?
Once at the point of the income source ie capital gains and/or income tax. Again when a small business owner draws a living wage that is then subject to PAYE.
My business a mineral exploration firm will not make profit until years 3 – 5. All capital invested for exploration activities has been self funded to date, yet I am paying PAYE on the monies I have previously paid Capital Gains on.
Why is it important?
Start Up business owners need to take a small income to live.
it is unfair that an entrepreneur be penalised financially for the value creating businesses that bring revenue to this country.
To start any business it takes significant determination to survive during the volatile start up phases.
For years the Entrepreneur has not been assisted correctly in the UK, and this is why many Brits have moved abroad to countries that better support the research and development sectors such as mining, mineral exploration, pharmaceutical companies etc.
An idea would be to scrap PAYE payable on the business owner's drawings in cases where the business owner has invested personal funds into a business.
The freeze on Owner PAYE could run until the business is profitable.
PAYE due on other employees of the business still be payable.
An allowable backdated period lets say 3 years be put in operation. The reason this is important is that as when most new laws are adopted, most people find they are not eligible!
Timing seems to be in favour of Mr Sod.