The Agile Micro ISV Blog

Following it’s humiliating defeat in  the House of Lords, Her Majesty’s Revenue and Customs are moving the goal posts, again. In an effort to treat small businesses differently to large businesses, HMRC is trying to prevent small family businesses from sharing profits equally between, say a husband and wife.

If you are a shareholder in a large company, you are entitled to
receive dividends on your shares, regardless of whether you perform any
function or not. HMRC is trying to create special rules for, say husband and wife limited companies, or two friends in a limited company.

The PGC believes this:

• means Government does not regard small businesses as proper businesses
• makes it impossible for small businesses to self-assess their tax liabilities and adds another crushing administrative burden
• is inconsistent with divorce law and capital gains tax
• prevents small businesses being able to distribute their profits in the way that large businesses can
• penalises people who have jointly set up businesses in exactly the way recommended for years by the Government

Please help small businesses in the UK by signing this petition.