Benefits of Being a Sole Trader

Trading yourself is a challenge that strengthens your discipline and knowledge about business and how to function in a corporate environment. It allows you to take the extra time you may have to focus on private ventures and spend free time focusing on perfecting your craft through short courses and online lessons. There are many benefits to working as a sole trader, so let’s take a look at some of the best reasons why this could work for you:

• No start-up costs 

If you are familiar with the trade that you would like to venture into as a sole trader, you do not need to borrow money from a private investor or the bank to get yourself going. You can’t just win a competition – you have to put in the work.

You could easily use the items you already have and your skill and start advertising yourself and your trade to potential customers. If you wish to expand the equipment you need, you can add it as you receive payments instead of taking out loans that could affect your credit rating.

It’s worth using a good SEO consulting company if you are looking to improve your selling opportunities and businesses who invest budget in this area early on will have a greater chance of success.

• Full commission 

Once you have paid your tax and have bought whatever you may need to continue working, you can keep the profits to yourself. Without overheads and business partners to consider, you can bank all the money that you have made. Many self-improvement short courses are free for online learning and are offered by many institutions so you can comfortably learn and earn without spending more money than you need to. 

• Easy registration process 

As a sole trader, you do not need to register a business name and address to start trading. You could use your name as the name of the business, and you can use your home address as a location for notifications from HMRC. There is no need for a fixed landline for limitations to the type of business you need to register. Make sure not to use the “ltd” abbreviation because those are for limited companies only. 

You can register for tax over the phone or online with HMRC, which can be done with the assistance of a clerk if you do not understand the process. They can also help you with the information to learn about being a sole trader in your own space and time. 

An accountant can also come in handy by helping you understand your role with the type of tax you need to pay and how often you need to submit your tax return. As a sole trader, you can hire an accountant independently whenever you feel you need advice or assistance with keeping your paperwork legal.