What a sole trader is
A sole trader is a type of business. You can be a sole trader as your only job or at the same time as working for an employer.
You can be a sole trader if the following apply:
- you’re running your own business as an individual
- you work for yourself
This is different from owning a limited company or being in a partnership.
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Step 1: Check if being a sole trader is right for you
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Step 2: Choose your business name
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Step 3: Check what records you need to keep
When you start trading you must keep records. This will help you work out your profit or loss for your tax return.
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Step 4: Register as a sole trader
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Step 5: Check if you need to register for VAT
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Step 6: Plan for your tax bill
You may need to pay Income Tax on your profits and may need to pay National Insurance contributions.
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Step 7: Get help and support