January is a big month for tax as the almost audible tapping of computer keys from individuals and accountants finalising self-assessment forms makes clear. This month we will see whether income tax revenues will be a bonanza or a damp squib for the Treasury. Self-assessment may be something of a damp squib as high earners seek to avoid the soon-to-be-cut 50% top rate.
It is also a big month of course for corporation tax and the damp squib dangers are arguably greater on the company side. 2012/13 is proving to be a tough year for deficit reduction and part of the explanation for that is that it is such a disappointing year for corporate tax revenues. This month may change that but you would not want to bet on it.
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