Setting up as a sole trader is the simplest form of legal structure for a start-up. If you plan to freelance in the service industry, for example bookkeeping, consultancy, web design, etc, becoming a sole trader may be perfect for you.
To set up as a sole trader, you must notify HMRC of the fact, register for self-assessment, and file a yearly tax return. You will be taxed on your profits at the same rate as someone who is employed.
The biggest downside of being a sole trader is that you are personably liable for any business debt and/or contracts. It can also be challenging to enter into commercial agreements and attract investment as a sole trader.
Next Steps
If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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