I was recently speaking a few prospective clients who weren’t after specific bookkeeping advise, but were unsure about the whole process of becoming self employed and a sole trader. As such I created a small brochure to provide a quick overview of what they might need to know so that they can start the next step in their journey.
If you’re curious about what a sole trader is and how to register as one, this guide will reveal everything you need to know, including the pros and cons. This will help you explore what you need to know about a sole trader.
What is a sole trader?
When you are both self-employed and the sole owner of your business, you’re considered a sole trader.
Being a sole trader is often considered the simplest way of running a business – at least when the operation is a small one.
You have flexibility and full control over how you operate, overseeing its assets and benefitting from all profits after tax. This can be rewarding, but it also comes with a risk.
Sole traders are most commonly small businesses that provide a service to individuals, families of small/medium Employers (SMEs)
Sole traders don’t have to register with Companies House, but they do have to maintain accounting records, pay income tax and file a self-assessment with HMRC every tax year.
What will you find in the Guide?
- Advantage and Disadvantages of being a sole trader
- What is the difference between a sole trader and a limited company?
- How to register as a sole trader in business