Tax simplified for small firms

BUSINESSES with an income of under £77,000 will be taxed on a cash basis in an attempt to free three million companies from excessive red tape.

The chancellor said he wants to tax small firms “on the basis of the cash that passes through their businesses” rather than “asking them to spend a huge amount of time doing calculations designed for big business”.

Businesses will be allowed to grow within the scheme until their turnover hits £150,000.