Starting Your New Business - Sole Trader

What is a Sole Trader?  A sole trader is the simplest form of trading entity. When you're setting up in business, you'll need to make a decision on whether you set up as a sole trader or Limited Company.  As a sole trader, you will need to notify HM Revenue and Customs that you are trading (self-employed) even if you already send in a tax return, open a bank account and start trading.  As a sole trader, changes in your business can be met quickly, and you have complete control over your business and accounting affairs. However, you will also be personally responsible for any liabilities.

If you're seeking advice on what kind of company set up will work best for you, our team of professional business accountants offer expert support and guidance to help you make that choice.

Annual Accounts and Tax Returns for Sole Traders

As a sole trader, you will need to prepare annual accounts and submit a Self Assessment tax return each year.

The tax due on the business profits is paid in two instalments, with the all important dates being 31st January and 31st July.  You may also need to register for VAT.

Will you Have Employees?

If you are employing staff, you will also need to register as an employer for PAYE purposes.

More Information

If you would like to know more about setting up as a Sole Trader, contact:

Steve Mitchell This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Mairi MacIver This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Or call us on 01224 625111.