Sole Traders
Accounting advice for sole traders in Pinner and throughout the UK
Are you a sole trader? Contact Accountancy of West London Ltd We provide accounting help for sole traders in Pinner and throughout the UK.
Help and support for sole traders
If you’re a sole trader, and need accounting advice, contact Accountancy of West London. A sole trader is a self-employed person who is the sole owner of their business. If you are a self-employed then this means you work for yourself, and not for an employer. An individual who start trading as a sole trader, he/ she should inform HMRC within three months of becoming a self-employed. Then HMRC will ensure that the self-employed is paying Class 2 NICs and filling in a self-assessment form.
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 will keep all the profits.
Risks and benefits of sole traders
Trading as a sole trader has many disadvantages as well but the two main risks are: on the one hand you are personally liable and accountable for all your business debts – Should your business fail you could end up losing your personal assets such as house, car, etc. On the other hand you will be in a difficult position to raise finance – When you run a small unincorporated business, lenders will not lend you large sums and you may find raising finance very difficult, if cash-flow drying out the risk of failing will increase.
At Accountancy of West London
, we offer a number of accountancy solutions to assist you as a sole trader. Although being a sole trader is one of the simplest ways to trade, but there are many processes that need to be followed.