What a sole trader is

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.

This guide is also available in Welsh (Cymraeg).

You can be 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.

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

  2. Step 2 Choose your business name

  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

  5. Step 5 Check what taxes may apply to you

  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