And on the menu for 2015 are changes to Corporation Tax, Diverted Profits Tax and Air Passenger Duty. Sexy stuff, hey!
So, corporation tax is to be cut from 21 percent to 20 percent. This now means that the United Kingdom has the joint lowest corporation tax of all the G20 countries.
In Germany it's 30 percent and in France, 33 percent. Essentially it means that regardless of the size of business, small or large, they will all pay the same rate of tax on profits over $443,000.
Dear Sirs, We the leading businesses in the UK say vote Tory because they plan to cut corporation tax, and… er, that's it!
— Alan Tyler (@tylerinfo) April 1, 2015
Announced by Chancellor George Osborne and backed by the Tories, it might be worth a mention here that the Chancellor's own family business, Osborne and Little, failed to pay any corporation tax on company profits in 2012. Meanwhile the company directors, including George's parents, took home a total pay packet of $1.92 million.
@CCHQPress @George_Osborne @edballsmp Committed to propping up rich tax dodgers, while the rest of the suffers. On the right track!
— Imy (@wageslavrey) April 1, 2015
On the back of this announcement — the Labour party has pledged to reverse the cuts and return corporation tax to 20 percent.
http://t.co/9Vrlmke00W. Wonder how much tax they have paid the last 5 years? pic.twitter.com/QeeD54S92M
— Moments in Time (@AllenHerbert2) April 1, 2015
Tax Shaming
Diverted Profits Tax, so called 'Google tax', means that businesses making more than £10 million ($14.7 million) now have to tell HM Revenue and Customs if they are liable for diverted profit tax — and if they are — they have to pay 25 percent of profits in tax. It's designed to discourage large companies — like Google — diverting profits out of the UK through officially setting up the company in another country to avoid paying tax.
Companies such as Starbucks, Apple and Amazon have been severely criticized in recent years for shirking corporation tax. Coffee giant Starbucks paid nothing in corporation tax between 2009 and 2012 — despite making £400 million ($590 million) in 2011.
Company accounts also reveal that in 2011, Google made $3.8 billion in revenues from its UK businesses by artificially diverting profits to Ireland where the company is officially registered — thus avoiding paying Britain's rate of corporation tax. Instead, it paid only $8.8 million to the Exchequer. Tax experts say it should have been more like $322 million.
@David_Cameron show's off the letter he got from @google @AmazonUK @VodafoneUK @Dyson & @Starbucks about tax pic.twitter.com/2fRDfdxVy1
— UKITTY (@UkUkitty) April 1, 2015
So that's big or small businesses and global corporations covered. Now for the news on air passenger duty. The long and short of it is — if you fly shorter distances, you'll pay more than if you fly longer distances.
Higher levies for flights between 4,000 and 6,000 miles have been scrapped, so has the levy on flights more than 6,000 miles.
But there's a rise in air passenger duty on journeys between 2,000 and 4,000 miles from $2.95 to $105.
Hey @easyJet, now that Mr Osborne has abolished APD for infants under 2, how come you now charge £22 when it used to be free? #ripoffbritain
— BPSEA (@bpsea) March 31, 2015
Private jets will be subject to six times the economy Air Passenger Duty rate per person traveling on board. Helicopters however, are exempt from Air Passenger Duty.
This is good news for environmental campaigner Prince Charles, who flew just 80 miles in the Queen's helicopter from Highgrove to Ascot, two days after broadcasting a video message urging people to save the planet "not just for ourselves but for our children and grandchildren."
The people shoud switch lights off 2 save energy, So #PrinceCharles can fly by helicopter 2 watch a horserace. http://t.co/R1dOfXsUq4
— Dr. Henry Tam (@HenryBTam) April 1, 2015
April Fool's Day finishes at midday on the 1st. These tax changes can go on for years.
