Personal & Business Taxation - PowerPoint Presentation Example

Basically, there are domains for the taxation in UK, they are personal taxation and company taxation. Personal taxation is required for a UK resident who spent 183 days in UK during a tax year and he earned a net income which is taxable according to the law in place in the taxable year. Company or business taxation is applicable if the company situates in the UK and it is payable as given below Though this is the general tax rate for a company, UK tax law has given a tax-rate relief for small businesses in order to encourage entrepreneurship and enhance job creation as well as small-business innovation.

Removing tax barriers and thus to ensure small business growth was one of the main aims for this tax relief (Freedman, 2003, p. 22). But this has been widely questioned whether this tax relief make any contribution to economic growth or whether this targeting is achieved. In UK, the small business rate relief is normally administered by the concerned local authority. A business man, no matter whether it is sole proprietorship or partnership or other form of business, will be eligible for tax relief if his taxable value is below £18,000 (but £25,500 in London).

If the rateable value of a small business is just £6,000 or lower, the small business rate multiplier will be used along with a 50 percent relief. If the rateable value is between £6,001 to £11,999, the small business rate multiplier will be used and the rate relief will be between 0 to 50 percent. If the rateable amount is above £12,000 and less than £18,000, there won’t be any relief, but only small business rate multiplier will be used (Business Link,