If you’re a sole trader, you run your own business as an individual and are self-employed.
You can keep all your business’s profits after you’ve paid tax on them. You’re personally responsible for any losses your business makes. You must also follow certain rules on running and naming your business.
You need to set up as a sole trader if any of the following apply:
- you earned more than £1,000 from self-employment between 6 April 2019 and 5 April 2020
- you need to prove you’re self-employed, for example to claim Tax-Free Childcare
- you want to make voluntary Class 2 National Insurance payments to help you qualify for benefits
If you are unsure about your status, see working for yourself.
Structure your business
Name your business
Register your business
Choose your premises