When you need to set up as a sole trader

A sole trader is a type of business. You can be a sole trader as your only job or at the same time as working for an employer.

You will need to set up as a sole trader if the following apply: 

  • you’re running your own business as an individual
  • you work for yourself

This is different from owning a limited company or being in a partnership.

Part of Set up as a sole trader: step by step

  1. Step 1 Check if being a sole trader is right for you

    1. You are currently viewing: Find out more about becoming a sole trader

  2. Step 2 Choose your business name

    1. Check the rules for naming your business

  3. Step 3 Check what records you need to keep

    When you start trading you must keep records. This will help you work out your profit or loss for your tax return.

    1. Find out what business records you need to keep

  4. Step 4 Register as a sole trader

    1. Check how to register as a sole trader

  5. Step 5 Check if you need to register for VAT

    1. Find out more about when to register for VAT

  6. Step 6 Plan for your tax bill

    You may need to pay Income Tax on your profits and may need to pay National Insurance contributions.

    1. Get an estimate of how much you will need to pay
    1. Find out more about Income Tax rates
    1. Find out more about National Insurance rates

  7. Step 7 Get help and support

    1. Sign up for business support emails
    1. Join a webinar or watch a video to learn more about your responsibilities
    1. Find out how to choose a tax agent if you want to use one