HUNDREDS of small businesses in Swindon could be missing out on thousands of pounds each year.

Since last year's budget, the Government has imposed a zero per cent tax rate on the first £10,000 profit.

But according to Roderick Bluh, director of Banks Chartered Accountants in Old Town, many businesses are not taking advantage of it and are losing money.

He said: "We have been trying to get the Government's message across for some time and we are increasingly amazed at the lack of interest from small, non-incorporated businesses to take up what is literally an opportunity to have maybe thousands of pounds more a year in their pocket. It is like refusing a pay rise."

While Mr Bluh acknowledges that there is a lot of scepticism concerning the Government's push to make more businesses limited, he maintains the benefits far outweigh the drawbacks.

"Obviously there is a lot of scepticism about why the Government wants to encourage small businesses to become limited," he said. "How long will it last?

"And there are natural concerns about all the responsibilities that go along with being a director.

"However, if you don't have all the information, how can you make an informed decision?"

Last year, Chancellor Gordon Brown, boasted that we have the best corporate tax regime for small companies compared to any other industrialised country.

He said: "We want to see a more enterprising Britain where, in every region, more small businesses are starting up and where you can work your way up a ladder of opportunity from employment to self-employment, from micro businesses to growing business with government on businesses' side as firms hire for the first time, as they invest, as they seek equity, as they export and grow."

The firm will be holding a presentation on Monday, July 21, at its office in Devizes Road at 5.45pm to explain the tax in greater detail.

Free drinks and a buffet will be available. For more details call Swindon 616284.