The idea
Bring back zero rate of tax for profits under £10,000 for Micro businesses
Why is it important?
We registered as a Liimted company when Gordon Brown introduced the zero allowance for companies making less than ten thousand pounds profits per annum, with a sliding tax level up to the small companies rate as any profit went over the 10,000.
As a tiny rural business which continually struggles to hold its own this tax break was very helpful to us, I still paid tax on my salary so it wasn't as if no tax was being paid. When the tax break was removed after Brown had conned enough people into incorporation, it made things difficult for us and since then we have not had sufficient funds to enable any kind of expansion.
If this zero rate was reintroduced permanently it would assist those miniscule companies like mine to grow, or at least to exist in the current difficult climate and it would have been far more useful to us than cutting VAT which now has to be recovered by increasing it, which as we are not VAT registered is going to make our supplies even mopre expensive but we cannot increase our prices. The cost of this would be very small as those that would benefit from it are not numbered in their millions, nor probably the thousands!