At TaxSmart we can assist you in all aspects of being a sole trader. Although being a sole trader is one of the simplest ways to get started in business, as with all things to do with HMRC, there are processes that need to be followed.
Whether you are already trading or considering starting a business as a sole trader, TaxSmart offer a total solution for accountancy services and tax advice for self-employed individuals.
The main advantages of setting up as a sole trader are:
- In Business for yourself – You have control over the business. Decisions can be made quickly and easily making your business very responsive to changing situations.
- Ability to change – It is relatively simple to change the business format to a limited company as and when this is beneficial.
- Keep the profit – As a sole trader, all the profit belongs to you.
- Privacy – As a sole-trader, unlike a limited company, your accounts are not made public and therefore customers and competitors cannot see what you are earning.
Sole traders are often successful because:
- They can offer a more personal approach – A smaller business can often have closer contact with their customers and develop a close relationship offering a high level of service and customer care.
- More responsive to their customers – The fact that you make the decisions allows you to react more quickly to customer needs than a larger business could.
- Local Focus – Small local businesses will be closer to the community and can develop good business relationships with their knowledge of the area and local issues.
The main disadvantages of being a sole trader are:
- You are personally liable and accountable for all your businesses debts – If your business was to fail you could end up losing your personal assets such as your home, car, etc.
- Raising finance – Sometimes, when you run a small unincorporated business, banks will not lend you large sums and you may it difficult to raise funding for the business.
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TaxSmart Accounting are an independent and forward thinking accountant with the flexibility to meet the client’s needs in a professional and personal manner. Outsource as much or as little of your bookkeeping and payroll needs as required with our fully personalised service. Contact us today for further information or a free consultation on how we can help your business.