Here at The GNS we deal with all types of businesses,our fixed fee sole trader accounts service is available to organize your business income and expenditure in order to produce your accounts and taxation liability. As with all the services we provide, we’ll complete the process by submitting your return to HMRC.
Setting up as a sole trader is the best way to start up a new business. When compared against setting up as a limited company, it may seem like an easier and more convenient option.
As a sole trader your tax will be self-assessed, and you will pay tax on your profits. The GNS team will guide you through the intricacies of allowable expenses to ensure your tax is calculated correctly.
What is a sole trader?
A sole trader, also known as a sole proprietorship, is a simple business structure in which one individual runs and owns the entire business.If you’re a sole trader, you have no legal identity separated from your business. A sole trader is entitled to keep all profits after taxes have been deducted but is also liable for all losses the business incurs.
Why become a Sole Trader – The benefits
Control – As a sole trader, you’re your own boss, you steer the ship unaided. You are able to make decisions without consulting other partners / directors / shareholders as you look to develop a business that works the way you want it to work.
Accounting – Although you are required to keep your books up to date, the actual accounting is much simpler as compared to a limited company
Privacy – Your data is private to you and totally confidential.
Profits – As a sole trader one can retain all profits, rather than have to share them across the business.
Flexibility – You being your own boss allows you to decide what type of work you undertake, timings of your work and most importantly the pricing of jobs.
Costs – There is absolutely zero cost setting up as a Sole Trader. All you need to do is inform HMRC that you are Self-Employed. Similarly, yearly accountancy fees are much lower compared to that of a limited company.
How do I register as a sole trader?
Unlike limited companies, which are required to follow a process called incorporation, there is no specific process for registering as a sole trader. Instead, all you have to do is register as self-employed by registering for Self Assessment. If you want to register as a sole trader, you will only need to complete a registration form via HMRC.You’ll need to file a tax return every year. GNS promises you to deal with every concern of your sole traders account services.
Setting up as a sole trader is simple
If you’re branching to sole trading you won’t need to fill any forms by the Companies House making the process quick and simple but you are required to inform the HMRC of your self employment status and that you are operating a business as a sole trader. You will not need to have a registered office to get started.