Just four in 10 sole traders have returned to pre-pandemic levels of trading despite Covid-19 restrictions being lifted, a major study has revealed.<\/p>\n
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The report comes after the Government revealed that the smallest of businesses could pay more tax next year.<\/p>\n
The research, published by business lender iwoca, shows that sole traders have been \u201cdisproportionately impacted\u201d by the coronavirus pandemic and are \u201ctwice as likely\u201d to not be trading compared to limited companies.<\/p>\n
In total, some 60 per cent of sole traders say they have not returned to pre-pandemic levels of trading or are not trading at all. Many of these businesses say customers have not returned or Covid-secure workplace measures are preventing them from working at full capacity.<\/p>\n
One in two sole traders, meanwhile, are concerned that they won\u2019t be able to pay themselves a salary in the next six months, while one in three (28 per cent) worry about being able to afford new stock.<\/p>\n
A further one in five (20 per cent) are concerned that they will struggle to repay coronavirus loans, such as a Coronavirus Business Interruption Loan or Bounce Back Loan.<\/p>\n
Commenting on the findings, Seema Desai, iwoca COO, said: \u201cThe pandemic has hit sole traders particularly hard.<\/p>\n
\u201cWe need them back on their feet \u2013 hopefully the lifting of restrictions will help them to recover, which will be great for them and also for the economy more broadly.\u201d<\/p>\n
The survey comes after the Government proposed changing the way sole traders and small businesses pay tax.<\/p>\n