Business: Small company boosts and tax cuts

Gordon Brown said in his budget speech today that small companies corporation tax will be cut by 20p to 19p and the start rate reduced to 0% for all business earning less than £10,000.

Brown also announced automatic fines for late VAT payment will be abolished for 700,000 small firms.

Further measures announced included automatic relief for VAT on bad debts for small firms.

Brown pledged an extra £30m for small firms training requirements.

Ad a major overhaul of the VAT rates and systems paid by small companies will be also introduced to reduce the complexity of the system to provide a flat rate VAT to more small firms from next April.

Small firms filing tax returns online will now receive direct cash help to build their businesses, says Brown, in a bid to boost the move towards online filing.

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