Operating as a Sole Trader

A Sole trader is when a worker is working for themselves rather than for another person or company, but is set up without an incorporated company. To put another way, it is earning a livelihood directly from your own trade or business rather than as an employee of another. To be a self-employed sole trader, an individual must register with HMRC as such as soon as they start trading; failure to register within the first 3 full months of trading will incur penalties. Registering as a self employed sole trader is the simplest and quickest way to start a business. 

There are two different ways a candidate can register as a self employed person; a sole trader (acting on their own) or as a partnership (similar to sole trader but with 2 or more people). In both circumstances a company name can be chosen, but liability to company losses remains the responsibility of the individual(s).
 
Note that some recruitment agencies and clients will not engage with an individual who is registered as a sole trader, this is due to a lack of limited liability.

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