Are you already trading or considering starting a business as a sole trader? Keith Rogers Accountants can help as we are a ‘one-stop-shop’ for accountancy services and tax advice for small to medium size businesses and self-employed individuals.
If you start working for yourself then you are classified as being self employed and you must register with HMRC as you will be required to pay Class 2 National Insurance. To notify the revenue you will be required to complete form CWF1 which we at KRA would be happy to assist you to complete at a Free Initial Consultation at one of our offices. You are required to complete and file this form within three months of becoming a sole trader so if you have recently started trading don’t hesitate please telephone KRA on +44 (0) 20 3145 0995. There are some exceptions and there are also special rules for particular industries such as the construction industry which is governed by the Construction Industry Scheme (CIS ).
Being a sole trader is the simplest and cheapest way to start to run a business as it doesn’t require any registration fees. From a legal point of you there is no difference between you as an individual and you as a self employed person so it is very clear to
Providers of finance
who is responsible for settling liabilities therefore there is less paperwork required and it is less complicated. Other advantages of being a sole trader are as follows;
- As a sole trader, you don’t need to notify Companies House or deal with any of the administrative responsibilities required of limited companies.
- As a sole trader it is easier to set up supplier accounts, obtain a loan because Limited Company will have less assets to back up business debt, while a sole trader has both the business assets and the owner’s personal assets
- It is an easier concept for individuals to grasp when they start their business.
- Can be sensitive to the needs of customers – since they are closer to the customer and will react more quickly, because they are the decision makers too.
- Business affairs are private – competitors cannot see what you are earning, so will know less about how the business works and how it succeeds
The disadvantages of being a sole trader are
- Raising capital for a Sole Trader from unrelated investor (and not a bank) can be more difficult because an unrelated investor has less peace of mind concerning how the Sole Trader uses the money from the investor whether it is used for business or personal reasons.
- As a business grows the risks of financial difficulties increase and the Sole Trader has unlimited liability for business and personal assets.
- Currently another disadvantage is as the business grows and profit increases all the profit is taxed at a higher rate than an individual owning a Limited Company therefore we at KRA woul be happy to discuss this with you at a no obligation Free intial meeting.
Keith Rogers Accountants is a specialist accountancy business for professionals working as self-employed sole traders. We provide services that go far beyond the standard year-end accountancy service you may get from a typical high street accountant. Keith Rogers Accountants undertake all your day-to-day invoicing and bookkeeping.
From this we provide you with weekly and monthly information allowing you to answer important questions that include how much you owe the taxman and how much you can safely take out of your business. Accurate and reliable answers to these simple questions can only be provided with a service that understands the day-to-day workings of your business.
We provide this service at very competitive prices which gives value for money that can’t be matched by other accountancy firms therefore if you would like to discuss the content of this article then please call KRA on +44 (0) 20 3145 0995 so we can discuss things further for FREE and if you require further assistance we will arrange a No obligation FREE initial meeting at one of our offices. If you are interested in instructing us we will offer you a FIXED FEE for our complete service with no hourly charges or hidden costs. You have unlimited telephone support during our opening hours to assist you in making the correct strategic decisions. If you wish to view the other services that Keith Rogers Accountants offer then please visit our website KRA-UK.com