Sole traders demand tax reforms and stability

Micro businesses, sole traders and freelancers would like to see the government overhaul the taxation system.

A new report from the Professional Contractors Group (PCG) has said that an independent review should be carried out into business taxation policies in the UK.

However, the PCG also said that once the review and any subsequent changes to the tax regime were completed, the government should guarantee a period of stability when no more alterations to the laws would be put in place.

According to the paper, any changes should be implemented over the course of the next Westminster parliament.

It added: "For at least the parliament after that there should be no significant changes to the tax system.

"If the government wishes to increase or reduce the tax yield, it should do so solely by varying rates."

What's more, the PCG said that restrictions on sole traders being paid on a gross basis by agencies should be removed.

Chief executive John Brazier said: "It is obvious to everyone that the tax system cannot carry on as it is."