UK business tax

SIR – Camilla Tominey (Comment, November 12) is correct – why would anyone start a business now in Britain? It is not just the regulations and the VAT that make this country an unattractive place to start a business, but taxation is now a killer.

Should a business make a profit, the Government will take 25 per cent of it, leaving less to reinvest in the business. NICS are also up, which is a tax on jobs – those same jobs that create wealth and prosperity. Should you decide to take a dividend, the Government is now planning to bring that in line with PAYE. If you sell the company, the Government is planning to remove Business Asset Disposal relief and raise the Capital Gains Tax rate. If you pay yourself more handsomely, it is planning to reduce the 45 per cent threshold to £125,000. The 40p rate earners already pay 65 per cent between £100,000 and £125,000 due to the personal allowance taper.

In comparison, Ireland has lower income tax and corporation tax is half that of the UK. There are jurisdictions where companies pay 5 per cent or even zero tax, yet still offer services to this country.

There is now no reward for long hours and taking risks to create jobs and wealth for the wider economy, which will result in entrepreneurs leaving the UK. I am now looking to move my business operations to Dubai. This will cost British jobs and means the Treasury to will lose tax receipts. I doubt I am alone in my decision. Andrew Holgate

Wilmslow, Cheshire