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Sole Trader Entities

There are several types of business set ups, each one has a different framework.

The Sole trader usually works independently of others; he will determine his hours and work ethics. He has no one to account to for profits except himself. The sole traders usually fall under the Inland Revenue Definition of Self Employed. This includes certain strict definitions which can be summarised as of

You are probably self-employed if you:

·                                 run your own business and take responsibility for its success or failure

·                                 have several customers at the same time

·                                 can decide how, when and where you do your work

·                                 are free to hire other people to do the work for you or help you at your own expense

·                                 provide the main items of equipment to do your work

You are probably employed if you:

·                                 have to do the work yourself

·                                 work for one person at a time, who is in charge of what you do and takes on the risks of the business

·                                 can be told how, when and where you do your work

·                                 have to work a set amount of hours

·                                 are paid a regular amount according to the hours you work, and get paid for working overtime (even if you do casual or part-time work, you can still be employed)

You can also be employed and self-employed at the same time, perhaps by working for an employer during the day and running your own business in the evenings. Think about each contract separately: you may find that you are self-employed for one but employed for another.

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Business Start Up Customers Frequently Asked Questions

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