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Firms face extra tax burden

Small business owners have been warned that the government has introduced new legislation to allow local authorities to charge companies another business tax.

The Business Rate Supplements Act allows country councils and unitary district councils the power to tax businesses to support projects that are aimed at economic development.

"Councils now have the power to demand a Business Rate supplement on top of the bills businesses are already paying, such as corporation tax, VAT, National Insurance and the ever rising business rate bill," said Julie Calder, chair of the Business Centre Association (BCA).

The new tax is to be levied on business premises with a rateable value of more than £50,000 and the amount charged is capped at 2p per £1 of rateable value.

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Post Date: September 11th, 2009