Responding to the Chancellor's budget speech, the Association of Chartered Certified Accountants (ACCA) was disappointed with the ways the Chancellor has found to tax individuals and businesses - all in the name of 'anti-avoidance' and 'simplification'. These include charging higher levels of corporation tax (19%) on small company dividends and setting a pensions cap of Ј1.5 million.
Robin Jarvis, ACCA Head of Small Business, said: "The decision to tax small company dividends - in the name of redressing the balance of businesses which have supposedly 'abused' the corporation tax zero-rate band - could be described as unethical, given that it was only two years ago that businesses were encouraged to adopt incorporated status by the government's introduction of the zero-rate for the first Ј10,000 of profits."
