Overview

Sole traders must register with HM Revenue and Customs (HMRC) and follow certain rules on running and naming their business.

If you're a sole trader, you run your own business as an individual and you're self-employed.

You can take on staff - being a sole trader means you're responsible for the business, not that you have to work alone.

Your responsibilities

You're responsible for:

• keeping records of your business's sales and expenses
• sending a Self Assessment tax return every year
• paying Income Tax on your profits and Class 2 and Class 4 National Insurance - use HMRC's calculator to help you budget for this
• your business debts
• bills for anything you buy for your business
• registering for VAT if your turnover reaches the VAT threshold
• registering with the Construction Industry Scheme if you're a contractor or sub-contractor in the construction industry

Naming your business

You can use your own name or trade under a business name - read the rules for naming your business.

You must include your own name and business name (if you have one) on any official paperwork, like invoices and letters.