This is the simplest way to run a business and is better known as being self-employed. It is low cost and popular with smaller businesses with lower turnovers and profit levels such as: plumbers, taxi drivers, builders etc. Legally, there is no difference between the owner’s personal and business affairs, so this should be considered when thinking about taxation and legal liability issues.

An important aspect is that the owner is taxed on all the profits, even if some are re-invested in the business. Accordingly sole trader status is not as tax efficient as trading through a Limited company as there are fewer opportunities for tax planning. This is why most businesses incorporate when business profit increases.

We can assist you with sole trader registration, VAT registration, record keeping and we can even assist with opening a business bank account.