The simplest form of business is a sole trader.
A sole trade is an individual trading in their own name. The business itself has no separate identity, so that the profits of the business are treated as the profits of the trader and the trader is liable for the debts of the business.
A sole trader is subject to income tax and Class 4 National Insurance Contributions on the profits of the business, which are reported through their Self-Assessment Tax Return each year.
The sole trader will have to register with HMRC for self-assessment, if they are not already within this system will also have to register for VAT if the turnover exceed the registration threshold, and register a PAYE scheme if it has employees.
Tax Innovations can provide the following services to your partnership:
- Registering for self-assessment with HMRC.
- VAT registrations and returns.
- Payroll services.
- Trading accounts.
- Self-assessment tax returns.
- Incorporation of the trade.
If you would like to discuss how we can help your business, please email firstname.lastname@example.org or call us on 01962 856 990.
For specialist tax advice as a sole trader please call us on 01962 856 990 or visit our contact page.