A sole trader is a common legal form for a business. In essence, the owner of the business is the business itself. In other words, the owner of the business incurs all debts and liabilities of the business, as well as owning all the assets and rights of ownership associated with the business. The benefits of sole trader are simplified reporting requirements of your business with only annual returns submitted to HM Revenue & Customs being required. No aspect of your business performance need be disclosed into the public domain. However, there are some drawbacks , for example personal liability for any actions involving the business, which means that the sole trader is personally liable for any debts incurred as a result of trading.

ESquare can help you understand your legal requirements when undertaking business as a sole trader and the statutory deadlines that sole traders are subject to. Please click here for contact details.