Setting up as a sole trader
06/06/2024

Setting up in business as a sole trader is arguably the simplest way of starting and running a business. The advantages of being a sole trader include independence, ease of set up and running your business, and the fact that all the profits go to you.

The disadvantages include a lack of support, unlimited liability, the prospect of paying more tax on high profits and that you are personally responsible for any debts run up by your business.

HMRC publishes some simple guidance for those looking to set up as a sole trader. The list can be found at https://www.gov.uk/set-up-as-sole-trader

The main steps listed are as follows:

  • Step 1: Check if being a sole trader is right for you
  • Step 2: Choose your business name
  • Step 3: Check what records you need to keep
  • Step 4: Register as a sole trader
  • Step 5: Check if you need to register for VAT
  • Step 6: Plan for your tax bill
  • Step 7: Get help and support

If you are looking at setting up as a sole trader we can also advise you of the many pitfalls you should avoid and if a sole trader status is the best structure for your proposed business.


About us  

Our director-led service is supported by the expertise of our highly skilled staff. We believe that our reputation for technical excellence is one of the main reasons for the company’s continued growth. 

Since the 1960’s we have been looking after the financial needs of our diverse database of clients. The practice of today evolved from two long-established firms originating in Coventry (Luckmans) and Kenilworth (Duckett Parker) merging in 2000.

Our vision in 2000 was to combine the directors' expertise to the greatest advantage for you – our client. That ethos still holds true and has enabled us to build a relationship with our clients that lasts.

Legal

Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

Contact us

LDP Luckmans
1110 Elliott Court, Coventry Business Park
Herald Avenue
Coventry
CV5 6UB

+44 (0) 24 7662 7200
partners@luckmans.com
JUMP TO TOP