Business – Sole traders seek change

Business - Sole traders seek change

Chancellor Gordon Brown came under pressure this week to include the UK’s four million unincorporated sole traders in his proposals to overhaul corporation tax rules.

The Federation of Small Businesses said sole traders should be allowed to enjoy the benefits of cuts in tax along with larger companies. Currently, sole traders pay income tax at 40% on income over z26,100, while companies will enjoy a 31% tax rate after 1999.

Stephen Alambritis, a spokesman for the federation, said it placed an unfair burden on the smallest and most vulnerable businesses.

‘We want some fairness. There was an argument that sole traders enjoyed lots of allowances but these have largely disappeared over the years.

They should be shifted out of the personal tax scheme and allowed to pay corporation tax.’

The federation said it also wanted the chancellor to keep capital allowances in place. ‘We see no reason why he couldn’t take them up to 100%,’ said Alambritis. He added Brown should allow companies to write off their spending on the millennium bomb and the conversion to a single European currency.

‘Small and medium-sized companies need the most encouragement in these areas.’

Related Articles

Supreme Court rules against Pimlico Plumbers in landmark employment case

Legal Supreme Court rules against Pimlico Plumbers in landmark employment case

1m Alia Shoaib, Reporter
Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

2m Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

4m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

5m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer