[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 1 October, 2004, 14:16 GMT 15:16 UK
Small business tax fear
Geoff Jones of Arctic systems
Mr Jones was disputing an unexpected tax bill of 42,000

BBC Radio 4's Money Box was broadcast on Saturday, 2 October, 2004 at 1204 BST.

The programme was repeated on Sunday, 3 October, at 2102 BST.

Family firms could face higher tax bills following a ruling by the Inland Revenue's Special Commissioners.

The commissioners found the Revenue was right to stop a married couple from reducing their tax bill by sharing their liabilities.

Partners and spouses often each draw an income through dividend payments as a means of reducing their overall tax bill.

But in the case of Mr and Mrs Jones of Arctic systems, the Revenue said the wife's dividend payments exceeded her contribution to the business.

As a result, it decided the dividends could only be treated as if they were all her husband's income.

Geoff Jones told us of his disappointment at the decision; and we were joined by Simon Juden of the Professional Contractors' Group which has been supporting the Jones's case.

Anne Redston from accountants Ernst & Young explained the implications this may have on other small businesses.

Producer: Jennifer Clarke
Presenter: Paul Lewis
Reporter: Jessica Dunbar
Web Producer: Nathalie Knowles

Money Box



Download or subscribe to this programme's podcast

Podcast Help

Tax fear for UK small businesses
30 Sep 04  |  Business
External internet links
01 Oct 04  |  Moneybox

The BBC is not responsible for the content of external internet sites


News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific