Sole trader meaning

This table sets out a comparison of the tax treatment for: sole traders; partnerships (for these purposes covering general partnerships, limited liability partnerships (LLPs) and limited partnerships); and companies. It does not take into account any reliefs or exemptions that might be available to specific taxpayers, nor any anti-avoidance provisions that could apply in particular situations. For rates and thresholds in the current tax year, see Practice Note: Key UK tax rates, thresholds and allowances. For further detail on the tax position of each business vehicle, see Practice Note: Forms of business vehicle—tax summary. For more on selecting between business vehicles, see Practice Note: Tax influences on choice of business vehicle. Point of comparison Tax treatment Sole trader: Not a separate taxable entity — the sole trader is taxed personally on their trading activities. Partnership: Not a separate taxable entity — a partner is taxed as an individual on a notional trade reflecting their share of the partnership. Company: A separate...

This Checklist This checklist sets out key questions and considerations for local authority officers to weigh when defining the scope and content of a criminal investigation into a suspected criminal offence. What offence(s) are under investigation? Examine the statute and determine: the elements of the offence; and who may commit the offence What is the legal status of a potential defendant(s)? Is the potential defendant: a registered company? an LLP? a partnership? a sole trader? an unincorporated association? an individual?...

In this issue: Media Internet Databases Data protection Advertising, marketing and sponsorship Telecommunications LexTalk®TMT: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Media Getty gets pyrrhic victory in UK stability AI case Law360, London: On 4 November 2025, Getty Images persuaded a London court that artificial intelligence (AI) developer Stability AI had produced a small number of images infringing the stock image company’s trade marks. However, the court was not convinced that the model itself breached the photo giant’s intellectual property in this landmark dispute. See: Getty gets pyrrhic victory in UK stability AI case. Internet Ofcom launches call for evidence on age assurance effectiveness and app store safety under OSA 2023 Ofcom has opened a call for evidence to inform two statutory reports required by the Online Safety Act 2023 (OSA 2023). The reports will review...

Original news Mr S (CAS-39170-Y5Q0)—13 October 2023 Summary The DPO has partly upheld a complaint concerning a section 75 liability arising within a non‑segregated defined benefit scheme governed by Scots law. The complainant, an employer participating in the scheme, had incorporated his sole‑trader plumbing business. He was wrongly assured that incorporation would have no impact; in reality, it triggered a section 75 employer debt under the Pensions Act 1995. Because of the scheme’s complexity, the company was not told the amount of the liability for well over six years. The DPO decided that: no limitation or prescription defence applied; the scheme administrator made a negligent misstatement about the impact of changing the business’s legal status, the complainant reasonably relied on that advice, and suffered financial loss; and the failure to provide timely notice that a section 75 debt had arisen was maladministration. This outcome highlights the complexity of the employer debt framework and the importance of seeking advice. ...

Sammy Garden Ltd v HMRC [2025] UKFTT 274 (TC) A landscaping professional who had been a sole trader subsequently formed Sammy Garden Ltd (SGL) on 9 March 2021. On 20 May 2021, a VAT1 was filed with HMRC to register SGL for VAT, showing 9 March 2021 as the EDR. HMRC took two months to process the application and then provided SGL with its VRN, confirming the effective start date as 9 March. In HMRC’s view, this required the taxpayer to account for VAT on all supplies made from that date forward...

Practice Note This Practice Note outlines the courts’ treatment of business assets in financial remedy proceedings, covering matters such as whether those assets might be realised by sale, the circumstances for lifting the corporate veil and the effect of the Supreme Court’s ruling in Prest v Petrodel Resources, as well as the deployment of expert opinion. It further reviews situations in which business assets may, to varying degrees, be classed as non-matrimonial/civil partnership property, and how risk is apportioned between the parties as between assets that are ‘copper-bottomed’ and those that are ‘risk laden’, with reference to Wells sharing. Business interests—whether shareholdings in a limited company, stakes in a partnership or LLP, or the assets of a sole trader—form part of the pool of marital/civil partnership assets alongside other property or investments. Unlike land or buildings, bank balances and portfolio holdings, a business interest is often hard to quantify and typically lacks liquidity. A business interest is not merely an item to be costed by an accountant and inserted...

Practice Note: Forms of business vehicle—tax summary When one or more individuals decide to set up a business, they must choose the vehicle through which the business will be run. In addition to the commercial and legal reasons informing that decision (see Practice Note: Forms of business vehicle), the tax treatment applicable to each distinct vehicle will often be the determining factor in deciding whether it is suitable for carrying on a particular business. A summary of the tax consequences of operating as: a sole trader a general partnership a limited partnership a limited liability partnership a company is addressed in Practice Note: Forms of business vehicle—tax summary and the Choice of business vehicle—tax comparison table. This Practice Note brings together some of the principal tax considerations that shape the decision of a person, or a group of people, when weighing the choice of business vehicle, highlighting how differing tax treatments can influence the appropriateness of each option for...

Debt Protocol or Practice This Practice Note explains how to interpret and apply the pertinent CPR provisions. Depending on the forum hearing your case, you may need to account for extra requirements—details appear below. It also outlines the pre-action steps a court would ordinarily expect before starting a contractual debt claim. Specifically, it summarises the approach envisaged by the Pre-Action Protocol for Debt Claims (Debt Protocol), potentially relevant to debts pursued by a business (including a sole trader or public body) against an individual (including a sole trader), and the Practice Direction—Pre-Action Conduct and Protocols (Practice Direction), which covers most other debt claims. For further guidance on debt claims, see: Practice Note: Starting a contractual debt claim—a practical guide Practice Note: Debt claims Practice Note: Discharging a contractual debt Starting a contractual debt claim—checklist For more general guidance on: alternative dispute resolution (ADR), see: ADR and dispute resolution clauses—overview starting claims, see: Starting a claim...

[ Insert organisation’s name ] will treat the following information as confidential: Tenderer’s name [ Insert name ] Address; all offices; registered address [ Insert details ] Telephone, fax, email(s), website [ Insert details ] [ Company registration number if applicable ] [ [ Insert details ] ] Legal status [ Insert details eg, limited company, sole trader, LLP, partnership ] Summary of organisation, activities, and years providing Services to organisations [ Insert background information ] Board/leadership composition and organisational chart with departmental functions [ Insert details; attach chart/illustration if appropriate ] [ Holdings over [ insert figure, eg 10 ]%: persons/undertakings controlling the Tenderer’s capital or votes, and organisations the Tenderer controls ] [ [ Insert details, contacts, documents, particulars and holding periods if applicable ] ] [ Joint venture, shareholders’ partnership or similar agreement ] [ [ Insert key terms if applicable ] ] Total staff numbers by partners, directors, assistants, secretaries, etc [ Insert details...

1 Individual 1.1 Individual or sole trader party designation clause [ insert full name of party ], trading as [ insert trading name ], of [ insert address ] (the [ insert defined term for party ]). 1.2 Individual signing Executed by [ insert individual’s name ] at [ insert place ] on [ insert date and month ] 20[ year ] ................................................. Signature of [ insert individual’s name ] witnessed by: ................................................. Full Name (Witness) ................................................. ................................................. ................................................. ................................................. Address ................................................. Signature of Witness 1.3 Individual signing by Power of Attorney Executed for [ insert individual’s name ] by [ insert Attorney’s name ] [ his OR her ] attorney under Power of Attorney dated [ insert date of Power of Attorney ] at [ insert place ] on [ insert date and month ] 20[ year ] ................................................. Signature of [ insert Attorney’s name ] witnessed by: ................................................. Full Name (Witness) ................................................. ................................................. ................................................. ................................................. Address ....................................................

I leave [ free of tax ] to [ full name of beneficiary ] of [ beneficiary’s full address ] my business of [ nature of business ] [ also called [ name of business or trading name where relevant ] ] at [ full address(es) of where business carried on ] together with all assets: all goodwill, machinery, plant, equipment, stock, vehicles and other effects; all debts due and monies credited at any bank or elsewhere, and the benefit of all contracts; any freehold or leasehold premises it uses [ free of charges, to be cleared free of tax from the residue under [ clause 7 ] of this Will, including costs and interest accrued before redemption ] but subject to [ paying any such charges and to ] the beneficiary assuming all business liabilities; where leasehold property is included they must pay rent, comply with the tenant’s covenants and conditions, and keep my estate indemnified against all liability (before or after my...

In financial remedy proceedings, it is usual for one party to earn on a self-employed footing as a sole trader in practice. Instead of using a separate legal personality, for example a company acting as the primary earning vehicle and paying salary and dividends, they trade in a chosen style or their own name and settle personal income tax on profits. Business costs are set off in the ordinary manner, and accounts are normally drawn up for this very purpose. Some sole traders simply run income and outgoings through a personal bank account, while others prefer to operate from a separate, dedicated business account...

We have been unable to locate any case law on the exact matter raised in your query at this time. Nevertheless, please kindly consider the following further details, which you may find helpful. When the Pre-Action Protocol for Debt Claims (the Protocol) applies The Pre-Action Protocol for Debt Claims (effective from 1 October 2017) is engaged when a business—such as a sole trader or public body—seeks recovery of a debt from an individual, including a sole trader. It is inapplicable to business-to-business debts except where the debtor is a sole trader (Pre-Action Protocol for Debt Claims, para 1.1)...