Justifying the proposal, Mr Farage said in the Telegraph this morning that: “two-thirds of British businesses do not make a profit over £10,000 every year but are nonetheless subjected to corporation tax.”
He made a similar claim in his speech this morning, that a million companies do not make a profit of over £10,000 a year.
This is incorrect.
Mr Farage seems to have confused the number of limited businesses who have to pay up to £10,000 of corporation tax (one million out of about 1.5 million companies in 2017/18) with the number of businesses which make profits of up to £10,000 (and therefore would only be liable to pay corporation tax up to £1,900, on the 19% rate).
The Brexit Party correctly stated this statistic in their manifesto: “one million companies - some 66% of the total number - pay less than £10,000.”
The party’s pledge is not to stop all those companies paying corporation tax altogether, though. The Brexit Party confirmed to us that its pledge is that corporation tax would be waived for the first £10,000 of pre-tax profits, not the first £10,000 of tax owed.
We haven’t seen figures to show exactly how many companies have profits less than £10,000. A company with profits of £10,000 would normally pay £1,900 in corporation tax.
The available statistics show that 279,780 companies paid less than £1,000 in 2017/18 and 713,590 companies paid less than £5,000. So the number who will have profits of less than £10,000 will be somewhere between, and so fewer than half of the 1.5 million companies have profits of less than £10,000.
You’ve probably seen a surge in misleading and unsubstantiated medical advice since the Covid-19 outbreak. If followed, it can put lives at serious risk. We need your help to protect us all from false and harmful information.
We’ve seen people claiming to be health professionals, family members, and even the government – offering dangerous tips like drinking warm water or gargling to prevent infection. Neither of these will work.
The longer claims like these go unchecked, the more they are repeated and believed. It can put people’s health at serious risk, when our services are already under pressure.
Today, you have the opportunity to help save lives. Good information about Covid-19 could be the difference between someone taking the right precautions to protect themselves and their families, or not. Could you help protect us all from false and harmful information today?