A Sole Trader business structure is where one person is in business on their own. It is simple to set up, you need a bank account and must tell HMRC that you are trading and pay tax each January via your Tax Return. You are taxed on what you earn in that year and unlike a Limited Company - if you have a good year trading, you can’t defer income to the next year to avoid paying Higher Rate Tax. Most importantly you risk losing personal assets if the business fails.
Find out more at www.ams-accountancy.co.uk
REF: F006
