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Sole trader

Sole trader is the legal term for self-employed people in the UK.

If you’re a sole trader, you need to do a few things:

Also, while technically you might work “for yourself”, HMRC will not consider limited company directors to be “self-employed”.

A limited company is a separate entity from you. When you’re a sole trader, your business and you are one – sometimes that might mean you’re taking a risk (you can get personally sued by a client, for example), but it’s much easier and cheaper to do your taxes. Plus you can always purchase inexpensive sole trader professional liability insurance.

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