Corporation Tax

[maximus]

I'm a bit confused about CT banding - I always thought that the 1st 10 k of profits was 0% & 19% after that - my accountant has prepared the current tax year on all turnover less expenses at 19% which he insists is correct

looking at the front story of CUK -


"The Chancellor claims introducing 19 per cent tax on profits enjoyed by all small traders will replace the zero per cent and non-corporate distribution rates, to usher in simpler calculations.

One-man band companies heard yesterday complying with the single rate means less red tape and represents ‘the lowest corporation tax rate since 1973,’ yet their advisors have told Contractor UK they strongly disagree.

“Existing limited company owners will pay more tax thanks to the new 19 per cent tax on small companies,” said Simon Dolan, senior and founding partner at SJD Accountancy.

“The Chancellor says he intends to replace the non-corporate distribution rate and zero percent rates of corporation tax with a new single banding set at the current small companies’ rate of 19 per cent.

So is the 1st 10k tax free and about to be abolished in the next budget? or is my accountant correct in treating all profit as liable for 19% CT?

[IR35 Avoider]

The first 10K is only 0% for companies not paying dividends. For companies that do I don't think the budget change makes any difference - i.e. I think they get taxed at 19% on the first 50K.