Sole Trader
A Sole Trader is a person who retains the right to manage and control his/her business.
The benefits of being a Sole trader are:
- He/she enjoys all the profits of the business.
- There are no special legal rules to operate under.
- No formalities are involved in setting up or running the business.
- No information relating to the business need be made public.
The disadvantages of being a Sole Trader are:
- The business remains his/her legal responsibility and he/she is personally liable for the debts.
- Should the business become insolvent he/she may be declared 'bankrupt' and sequestrated so that all his/her property may be taken to satisfy the creditors.
If you decide to set up business as a Sole Trader we can help guide you through the maize of financial and other records you will be required to keep. You may even wish us to maintain the financial records for you. We will advise you if you require to be registered for VAT. We will also help you register your business with HMR&C. At the end of your trading year we will prepare financial accounts for you, calculate your Income Tax, complete your Tax Return and send it off to HMR&C. We will even speak to the tax office on your behalf.
As your business grows you may find you need to take on an employee(s). Again we will advise you on your legal obligation to operate PAYE. If you find the idea of PAYE daunting our payroll bureau will do the work for you.