Sole Traders
Myers & Co can help with all your accountancy and tax advice requirements. We offer an unrivaled service for small businesses and self employed individuals.
Are you considering starting a business as a Sole Trader or are you already setup as a Sole Trader? Myers & Co Accountants can help as we are a 'one-stop-shop' accountancy and tax advice service for small businesses and self employed individuals. 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.
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 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.
- Taxation - You may pay more tax and National Insurance than you would if you traded through a Limited company.
Meet The Team
Vijay Gohil
Accountant
