Small businesses will have to cough up most of the estimated 64 per cent increase in London’s corporation tax bill in the next 10 years.
This is according to research from chartered accountancy firm Perry’s, based on figures from both the Office of National Statistics and the City of London Corporation.
It suggested that SMEs in the capital will have to pay out a predicted £18 billion of the total corporation tax bill by 2026.
Currently, Perry’s said, 294,000 businesses pay the levy in London, and 99 per cent of that is paid by small and medium-sized enterprises.
Good news for profits
CEO of Perry’s Chartered Accountants, Stewart Pope, told Bdaily: “We estimate that small to medium businesses in the capital are paying an average annual corporation tax bill of £37,000 each, which is set to rise to £62,000 each by 2026.
But this, he said, also meant that profits for London-based SMEs would likely increase in the same period.
“The higher contributions also reflect the increase in profits that businesses are generating, which is a positive indication that the capital continues to remain a great place to do business,” Pope added.