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Which one of the following might a sole trader pay on their profits? Select one answer: A Corporation Tax B National Insurance C Income Tax D Import Duty - Edexcel - GCSE Business - Question 2 - 2015 - Paper 1
Question 2
Which one of the following might a sole trader pay on their profits? Select one answer: A Corporation Tax B National Insurance C Income Tax D Import Duty
Worked Solution & Example Answer:Which one of the following might a sole trader pay on their profits? Select one answer: A Corporation Tax B National Insurance C Income Tax D Import Duty - Edexcel - GCSE Business - Question 2 - 2015 - Paper 1
Step 1
Which one of the following might a sole trader pay on their profits?
Answer
A sole trader typically pays Income Tax on their profits from the business they operate. Unlike corporations, which pay Corporation Tax, sole traders report their income through their personal tax returns and are subject to the Income Tax rates applicable to their total income.