Tax ruling hits small businesses - papers 28 April

Accountants estimate some 200,000 such firms face the tax claim after the court rejected an appeal by West Sussex IT firm Artic Systems, although the Inland Revenue estimate puts the figure at about 30,000 businesses. ”Mr Justice Park said family firms could not reduce their joint tax bill by paying a depressed salary to the main breadwinner and then distributing profits in dividends equally between the spouses,” the paper writes. ”Mrs Jones, the company secretary who worked four hours a week, acquired her £1 share. But the judge said that even if Mr Jones, the company's chief fee ear...