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Q: Is there any difference between a ‘Sole Trader’ and being ‘Self Employedd’?

May 21 2007

Answered by: Philip Wilkinson Ask a question

Being a sole trader is the simplest way to run a business, and does not involve paying any registration fees, but you must register as self employed. Keeping records and accounts is straightforward, and you get to keep all the profits. The difference is that you are personally liable for any debts that your business runs up, which can make this a risky option for businesses that need a lot of investment.

Use the interactive tool on the Business Link website to choose which legal structure is right for your business.

Comments [4]

Comment by Sara Williams

Wednesday 23rd May 2007

Sole Trader and Self Employed are exactly the same. You just start your business and let the Inland Revenue know (and Customs and Excise if you think your sales will be big enough to take you over the VAT threshold).

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Comment by Adam Wayland

Wednesday 30th May 2007

That's right, there are various ways of starting a business and becoming self-employed. Sole-trader status is one of them. Click here to find out how to register as a sole trader.

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Comment by maz syed

Tuesday 12th February 2008

I want to get a trader insurace and drive vehicles for a garage on a self employed basis. What do I need to do for this?

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Comment by tange lighthouse

Tuesday 19th February 2008

how do u register as a sole trader?

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