In this week's newsletter we cover:
- 🧭 Navigating the Tax Maze: The 26.5% Corporation Tax Trap
- 🧐 R&D Tax Credit Claims Under Scrutiny - August 2023 update
- 🧠 Links to think
- 🚀 Links to do
🧭 Navigating the Tax Maze: The 26.5% Corporation Tax Trap
In the ever-evolving landscape of corporation tax, there's a new pitfall that companies need to be aware of: the marginal rate of 26.5%.
This rate applies to companies whose profits fall between the lower and upper profits limits, set at £50,000 and £250,000 respectively.
At first glance, this might seem like a simple progressive tax structure. However, as ever with tax, the devil is in the details. Companies that find themselves in this band are effectively paying a higher rate of tax on a portion of their profits.