Info


Sole Trader

  • A sole trader is an individual who sets up a business to run any kind of business operation.
  • A sole trader does not need to run PAYE or pay Corporation Tax so it is the simplest form of business and is often the entry level for a start-up.
  • Any tax on profits (after deducting expenses) are calculated by completing online Self Assessment returns at the end of the year.

Partnership

  • A partnership is two or more individuals who set up a business to run any kind of business operation.
  • The partnership does not need to run PAYE or pay Corporation Tax so it is a simple form of business and is often the entry level for a start-up.
  • Any tax on profits (after deducting expenses) are calculated by completing online Self Assessment returns at the end of the year.

Limited Company

  • A limited company is a separate structure that means the owners ie Directors and Shareholders are deemed to be separate to the company and not personally liable for any debts the company runs up. However it is a more complex structure since you are required to file annual accounts, run PAYE and pay Corporation Tax on the company profits at the end of the year.