Sorry. You need to upgrade your browser

You are using Internet Explorer 8

This is considered an out of date browser. This website has been developed with modern browsers in mind to allow it to display at its best in a wide variety of viewing situations - including mobile viewing. But we haven't supported older browsers like IE8. Please upgrade to the latest version of Internet Explorer - or try Mozilla Firefox or Google Chrome. Both are excellent browsers.

Thank you.

Chartered Certified Accountants
and Business Advisors

01530 267320

Setting up as a Sole Trader

A Sole Trader means you are a one-man-band as self-employed. You don’t have a boss!

When earning as a Sole Trade, any profits you make are personally yours, but also if things were to go wrong then any liability is personally yours too.

You will need to register with HMRC as self-employed and complete Self-Assessment Tax Returns each year.

Once that is done you’ll need to keep records of your business income and any expenses so that you can accurately complete a tax return each year. This is considerably easy if you use cloud-based software such as Xero, Quickbooks, Kashflow or FreeAgent.

Your tax return will then determine how much income tax you must pay as well as the amount of National Insurance contributions you’ll owe.

As you grow and your turnover increases then you may need to be VAT registered. You must register for VAT if your turnover exceeds £85,000. You can choose to be voluntarily VAT registered before your turnover reaches the threshold which may be beneficial if you are selling to other VAT-registered businesses and wish to reclaim VAT.

For some sole trader businesses you may need a special permission or license from your local authority for example childminders and restaurants etc. So make sure to do your research when setting up!

Happy business planning and Sence wish you every success in your new venture!

22 Oct 2018

« Back to latest news

Latest news

Moving Accountants

Accountants are extremely important to the functioning and profitability of your company. As well as managing your busin...

Click to read more >

Limited Company or Sole Trade?

Many people decide to make the jump in their career ventures into going solo " when making this exciting new change it...

Click to read more >

How can we help?

 

Submit

Testimonial

Jake's support has been essential.

Carol Brookes
Able 2 Consulting LImited

Click to read the full testimonial >