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Have you considered the benefits of becoming a Sole-Trader?

Have you considered the benefits of becoming a sole-trader?

Have you considered the benefits of becoming a sole-trader?

Feeling overlooked and unemployed? In a time of economic uncertainty and unemployment at an all-time high more and more people are looking into becoming sole-traders.

There are numerous benefits to being a sole-trader, which include:

  • You are the business owner
  • Quick and easy to start
  • Very few legal regulations
  • You get to keep all profits after tax
  • You will be able to claim a deduction for mortgage interest, rates and light and heat, if you have an office at home.
  • You can obtain capital allowances on a computer. An add back of allowances will apply if there is substantial private use.

There are also a number of additional financial perks to becoming a Sole-trader:

  • You can withdraw cash from the business without tax effect.
  • You can withdraw any amount of profits, but it is not classed as remuneration as you are not an employee.
  • Paying a salary to a spouse or family members must be commercially justified to be allowable for tax purposes.
  • You obtain tax relief for expenses that are incurred wholly and exclusively for the purposes of the trade.
  • If you can identify a proportion of an expense that relates to business you can claim the same proportion against tax.
  • An adjustment must be made for tax to add back the proportion of any expense that relates to “private use”.
  • Most commonly private use will be in respect of your use of telephone or power, own consumption of goods, and motor running expenses.

For more information check out:

www.ehow.com

www.businessvision.co.uk

www.constructaquote.com


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Photo by federico stevanin

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Discussion

4 thoughts on “Have you considered the benefits of becoming a Sole-Trader?

  1. Your blog keeps getting better and better! Your older articles are not as good as newer ones you have a lot more creativity and originality now keep it up!

    Posted by Reseller Hosting | January 3, 2010, 1:05 am
  2. What does logo design have to do with this article?

    Posted by BusinessAdvantage | December 7, 2010, 7:40 pm
  3. Your blog is good but these moving white spots really distracts people and make reading this site a pain. I copy the text to read on notepad.

    Posted by Cet | December 26, 2010, 6:08 pm

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