Election 2017: what you need to know

Manifestos are flying, televised debates raging and Theresa May or, may not, continue to be Prime Minister after next week’s election. But as a small business, what are the policies that you should be aware of before you make that all-important vote? Here we look at the tax policies of the three major parties:

Labour

It has been claimed that Jeremy Corbyn’s manifesto would “bankrupt Britain” by ramping up debt by £250 billion. By announcing plans that would see high earners and businesses expected to fork out £48.6 billion of extra annual commitments, he has been accused of planning to stage the biggest tax raid the country has ever seen. His policy outlines plans to:

  • Raise income tax for the 1.2m people earning over £80,000
  • Raise corporation tax by 26% - a raise of more than a third
  • Give extra powers for HMRC to chase both individuals and companies who avoid tax

Conservatives

Causing quite the stir in both her policy on social care, nicknamed ‘dementia tax’, which laid out plans for thousands more to contribute to the cost of the care, and the subsequent U-turn, May’s tax policies include:

  • Keeping VAT the same
  • Ensuring a decrease in corporation tax of 17% by 2020
  • Conducting a “full review of the business rates system to make sure it is up to date for a world in which people increasingly shop online”
  • A promise to “legislate for tougher regulation of tax advisory firms” and to take a “more proactive approach to transparency and misuse of trusts”

Lib Dems

Acknowledging that their plan would require borrowing £5 billion more in 2018/19 and £14 billion more in 2019/20, the Lib Dems hope to:

  • Increase basic rate of income tax to 21%, higher rate to 41% and the top rate to 46%
  • Increase corporation tax to 19% to raise a further £3.6 billion
  • Abolish Conservative tax breaks for married couples, inheritance tax and capital gains to bring in over £2 billion

Which way will you go on June 8th? Let us know!

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