The Sole Trader is by far the most common form of trading. As it suggests this is traditionally an individual who sets up in business alone and is the simplest method of complying with legislation with far fewer laws to consider than for a Limited Company. Often two or more individuals may combine their talents and form a partnership which has many of the same legal characteristics as a sole trader but requires careful planning from the outset.
It is very important to ensure that a sole trader registers with the tax authorities on time and correctly to avoid initial penalties. If the business is created efficiently then the owner can progress with very little to worry about other than complying with the requirement to file an annual Self-Assessment Tax return.
This is an area where Troubleshooters has considerable experience and can offer advice and support as well as ensuring compliance with filing deadlines and give advice on troublesome areas with a tax return that could attract HMRC attention!