Register As Sole Trader

Trading as a sole trader is the simplest and easiest form of business structure.

Sole traders are individuals who run their businesses and are responsible for all aspects of their operations. They have full control over their company and are personally liable for any debts or legal problems that may crop up in the course of the company’s operations. They are also accountable for managing their own personal finances, which includes paying their own taxes and keeping their own accounting records.

While sole traders may face challenges such as limited resources and a lack of support, they also have the flexibility to make quick decisions and adapt to changing market conditions. With this, you can also consider hiring a sole trader accountant.

It is relatively easy to set up and start as a sole proprietor. You complete a form and notify HM Revenue and Customs that you are operating as a sole trader (form CWF1). HM Revenue and Customs will issue you a 10-digit unique tax reference number. You will then be required to prepare and submit a self-assessment personal tax return every year that you operate as a sole trader. You will also be personally responsible for any debts or losses that your business has. It is important to have a solid business plan and financial management skills to succeed as a sole trader.

Learn about some of the advantages and disadvantages of operating as a sole trader:


  • Simple – it is the easiest business structure to set up.
  • Control – you are in total control of the business.
  • Switching – should you decide to switch to a limited company, it is a simple process.
  • Confidential – you don’t need to submit your accounts anywhere.




  • Unlimited Liability – if the business gets into financial difficulties then you will be personally liable for all business debts.
  • Raising Finance – unincorporated businesses (another name for a sole trader) can find it difficult to raise finance from banks.
  • Tax – sole traders have an additional tax liability of class 4 NIC which is assessed on business profits.
  • Economies of Scale – sole traders can find it difficult to benefit from economies of scale which larger businesses benefit from such as discounts for bulk buying, additional finance, and additional resources.

If you’re looking to start your own business, becoming a sole trader could be the perfect option for you. You’ll have complete control over your business and its finances, allowing you to make decisions that are best for you and your customers.

You’ll also have the ability to work from the comfort of your own home or any other location of your choosing, giving you the freedom to strike a work-life balance that is tailored to your specific needs. There’s no time like the present to start your own business and be your own boss.

Contact Stewart Accounting Services and learn about the advantages of being a sole trader, and take the first step towards your dream today!


While being a client of Mark`s he has always been highly professional & helpful. He is always available to answer my questions and is prompt and professional with his replies. I would strongly recommend Stewart Accounting Services to any of my friends or colleagues.

Man Doing Computations On His Notebook