What is a sole trader business?
A sole trader is a type of business structure where the individual owner is not legally distinct from the business. Setting up a business as a sole trader means that you’re entitled to keep any after-tax profits you make, but it also means that you’re personally liable for any debts the business has.
You’ll need to tell HMRC about your sole trader profits by submitting a Self Assessment tax return, so that you pay the right amount of tax on your earnings.
Download our guide to learn more about operating as a sole trader, or talk to us about our online accountancy services for sole trader businesses.