What is a sole trader?

A sole trader is a self-employed person who owns and runs their own business as an individual. A sole trader business doesn’t have any legal identity separate to its owner, leading many to say that as a sole trader you are the business.

As a sole trader, you have absolute control over your business, its assets and profits after tax. Alongside this control, this business model offers comparative simplicity, versatility and a number of other advantages. Unlike the owners of a limited company, however, a sole trader is personally liable for their business’s debts and their personal assets may be at risk if creditors cannot be paid.

Your responsibilities

Keep business records and records of expenses
Send a Self Assessment tax return every year
You earned more than £1,000 from self-employment between 06/04/20.. to 05/04/20..
Pay Income Tax on your profits and Class 2 and Class 4 National Insurance

You must register for VAT if your turnover is over £85,000.
If you’re going to employ people, registering a Pay As You Earn (PAYE) payroll scheme.

How should I decide? Sole Trader or LTD

Selecting the right business structure can be critical for many reasons, such as scalability, taxes, cost efficiency, protection, and growth among many other reasons. Making sure you select the right structure for the right reasons can result in being the key reason why your business succeeds or fails.

Let's manage your process

Making a decision depends on many factors. In this process, we come together with you and support you in making the right decision.

Legal Procedures

All transactions are handled by us, we keep you out of this complex business. We will only ask for the documents we ask you to provide.

Ready to switch accountant?

We know change can be stressful, but moving from one accountancy firm to another doesn’t have to be.

We will not tire you

As your new accountant we’ll take care of the entire changeover from your previous accountant or bookkeeper. We will start by contacting them to request all the information we need to correspond with HMRC and act on your behalf. Being a sole trader doesn’t mean you’re alone!.