Clause 31 - Small companies' rate and fraction for financial year 2002
Finance Bill
3:00 pm
Mr Mark Hoban (Fareham, Conservative)
Is the Paymaster General aware of the depth of feeling among sole traders and unincorporated businesses about the growing fiscal advantages that there appear to be to incorporation? It would appear that for a sole trader with profits of £42,000 in 1996-97, the fiscal advantage
of incorporation was about £1,400. In the 2003-04 tax year, it will be about £4,000. Many unincorporated businesses feel that the Government are trying to drive them towards incorporation. They do not wish to incur the additional costs of incorporation, but the tax regime is such that they feel almost obliged to do so because if they did not, they would be significantly worse off.