This is the simplest and easiest form of business to set up. The terms sole trader / sole proprietor are the same and similarly being “self-employed”. This business type can be used for any type of trade or vocation (service business).

Officially, the only obligations you have are to HM Revenue and Customs, who require any new business to be registered within 3 months of commencement. Failure to notify may result in a £100 penalty.

You do not need a separate bank account, business name or even business stationery!

Because of the ease in which people can become self-employed, there is a tendency to just “get on with it” and then maybe speak to an Accountant at a later date.

Invariably, we see new business people coming to see us when they have been trading for a while. They come with a view that the accountant just needs to prepare some accounts and work out their taxes!

In these cases, we find the clients are horrified that they have missed many things that are now going to cost them dear!

We cannot stress how important it is to see a Qualified Accountant at the very beginning. You do not need to see us straight away but at least within a month or so of starting because then we can inform you of your obligations such as:

  • Informing HM Revenue and Customs
  • Employing staff
  • Construction Industry regulations for those Tradesmen such as builders, plumbers, electricians…
  • VAT registration

Failure to comply with any of these regulations can lead to penalties that can run up to £000’s.

If you are thinking of starting in business or have just started as a sole trader, why not call us on 01252 375 466 for a FREE consultation and we will show you how we could take your stress away.

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