At TaxAssist Accountants, 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 get started in business, there are many processes that need to be followed to ensure a smooth tax assessment each year.
Are you considering starting a business as a Sole Trader or are you already setup as a Sole Trader? TaxAssist Accountants can help as we are a 'one-stop-shop' accountancy and tax service for small businesses and self employed individuals.
The main advantages of setting up as a sole trader are:
- Total control – You have total control over the business. Decisions can be made quickly and easily, from accountancy and financial decisions to general business decisions.
- Easy to change to another trading identity. It's far easier to change your trading identity from sole trader to a limited company.
- Keep the profit – as the owner, all the profit belongs to the sole trader.
- Business affairs are private – Seeing that your business is attached to you financially, competitors cannot see what you are earning, so will know less about how your business works and how it succeeds.
The reasons why sole traders are often successful are:
- Can offer specialist services to customers – For example: Service Garage.
- Can be sensitive to the needs of customers – since you are closer to the customer that allows you to react more quickly than a larger limited company.
- Can cater for the needs of local people – a small business in a local area can build up a following in the community due to trust.
The main disadvantages of being a sole trader are:
- You are personally liable and accountable for all your businesses debts. Should your business fail you could end up losing your personal assets such as your home, car, etc.
- Can be difficult to raise finance, because you are small and all finances are personal, banks will not lend you large sums and you will not be able to use any other form of long-term finance unless your change your ownership status.
- Can be difficult to enjoy economies of scale. As a sole trader, for instance, you may not be able to buy in bulk and enjoy the same discounts as larger businesses.
How we can help
Starting a business can be a big ordeal. Our accountants will advise on the following but not limited to assessing whether your company should convert to a Limited Company vs. Sole Trader, National Insurance exemptions, as well as Inland Revenue correspondence. Let TaxAssist Accountants help you make the most of your venture, and take the stress out of running your own business.
Contact us for a consultation with one of our accountants today by completing our enquiry form or calling on 0800 0523 555.
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