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As things stand, the individual sole trader is currently being taxed equivalent to an employee, and I believe that there is some disparity here because a sole trader is taxed on the actual profit that is made rather than on the amount they take for themselves.
I would like to see the government seeking to make things fair for a business whether they are trading as a sole trader or through a Limited Company.
In preference, how about a sole trader being taxed on the actual amount they take out of the business in line with what currently happens when businesses trade through a Ltd Company and they take salary or dividends from the company....?
Often, a sole trader has not been paid for the work they have carried out and yet they are taxed on this amount too.
They often have large debtor balances and overdrafts and have had to pay tax on these figures.
This, I believe, stunts the growth of small businesses who are set up in this way and trading through a Limited company at present enables growth and taxes the business more appropriately.
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