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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
Select one answer: C Income Tax
Answer
A sole trader pays Income Tax on their profits. Unlike corporations, which pay Corporation Tax, sole traders declare their business income along with their other personal income, and are taxed based on their total earnings. Therefore, the correct choice in this scenario is C: Income Tax.