Sole traders in the construction industry - Revision history

Designing Buildings at 09:06, 28 October 2020

2020-10-28T09:06:41Z

← Older revision		Revision as of 09:06, 28 October 2020
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	* Works contractor.		* Works contractor.

−	[[Category:~~Organisations~~]] [[Category:DCN_Organisation]] [[Category:Cost_/_business_planning]] [[Category:Public_procedures]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:Organisations]] [[Category:Cost_/_business_planning]] [[Category:Public_procedures]]

Designing Buildings: moved Sole trader to Sole traders in the construction industry

2018-02-15T17:00:31Z

moved Sole trader to Sole traders in the construction industry

← Older revision

Revision as of 17:00, 15 February 2018

Designing Buildings at 08:48, 19 December 2017

2017-12-19T08:48:19Z

← Older revision		Revision as of 08:48, 19 December 2017
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	This is generally considered to be the simplest way of running a business, with relatively simple accounting processes. However, the individual is personally liable for any debts which may accrue and, for businesses that require a lot of investment, it can prove a risky venture.		This is generally considered to be the simplest way of running a business, with relatively simple accounting processes. However, the individual is personally liable for any debts which may accrue and, for businesses that require a lot of investment, it can prove a risky venture.

−	Sole traders ~~must register with HMRC within 3 months of starting the business, adn must~~ register for the Construction Industry Scheme (CIS) if working in the construction industry as a subcontractor or contractor. The CIS sets out a series of rules for how contractors should make payments to sub-contractors.	+	Sole traders may have to register for the Construction Industry Scheme (CIS) if they are working in the construction industry as a subcontractor or contractor. The CIS sets out a series of rules for how contractors should make payments to sub-contractors.

	Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They may also need to register to pay any VAT.		Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They may also need to register to pay any VAT.
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	* Works contractor.		* Works contractor.

−	[[Category:Organisations]] [[Category:Cost_/_business_planning]] [[Category:Public_procedures]]	+	[[Category:Organisations]] [[Category:DCN_Organisation]] [[Category:Cost_/_business_planning]] [[Category:Public_procedures]]

Designing Buildings at 08:45, 19 December 2017

2017-12-19T08:45:43Z

← Older revision		Revision as of 08:45, 19 December 2017
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−	A sole trader is an individual who establishes their own business in which responsibility for the running and operation of the business is theirs alone.	+	A sole trader is an individual who establishes their own business in which responsibility for the running and operation of the business is theirs alone. The individual may employ others but they remain the sole owner of the business.

−	~~The individual may employ others but they remain the owner of the business. It~~ is generally considered to be the simplest way of running a business, ~~without~~ the ~~need to pay~~ any ~~registration fees~~, ~~relatively simple accounts process~~, ~~and the post-tax profits~~ can ~~be kept by the individual~~.	+	This is generally considered to be the simplest way of running a business, with relatively simple accounting processes. However, the individual is personally liable for any debts which may accrue and, for businesses that require a lot of investment, it can prove a risky venture.

−	~~However,~~ the ~~individual is personally liable for any debts which may accrue and~~, for ~~businesses that require~~ a ~~lot of investment, it can prove~~ a ~~risky venture~~.	+	Sole traders must register with HMRC within 3 months of starting the business, adn must register for the Construction Industry Scheme (CIS) if working in the construction industry as a subcontractor or contractor. The CIS sets out a series of rules for how contractors should make payments to sub-contractors.

−	To set up a business as a sole trader, it requires registration with HMRC within 3 months of when operating the business began. Register with HMRC for the Construction Industry Scheme (CIS) if working in the construction industry as a subcontractor or contractor. The CIS sets out a series of rules for how contractors should make payments to sub-contractors.	+	Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They may also need to register to pay any VAT.
−		+
−	Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They ~~will~~ also need to register to pay any VAT.	+

	There are two forms of sole trader:		There are two forms of sole trader:
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	* Sole practitioner.		* Sole practitioner.

−	A proprietor is usually a trader selling physical products to customers. A practitioner is usually a professionally-qualified person selling services to clients~~. In the construction industry this may be, an architect~~.	+	A sole proprietor is usually a trader selling physical products to customers. A sole practitioner is usually a professionally-qualified person selling services to clients.

−	~~Architects~~ can practice as sole traders, either with employed staff or entirely alone. Many architects choose this form of practice attracted by the freedom of conducting their own business, on their own account. This is ~~generally~~ considered one of the hardest forms of practice, ~~in that~~ they can feel ~~very~~ isolated from fellow professionals.	+	For example, architects can practice as sole traders, either with employed staff or entirely alone. Many architects choose this form of practice, attracted by the freedom of conducting their own business, on their own account. This is considered by some to be one of the hardest forms of practice, as they can feel isolated from fellow professionals.

	Advantages:		Advantages:
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	* Autonomy at work.		* Autonomy at work.
	* There are few formalities to setting up and operating as a sole trader. This can keep costs down and increase profits.		* There are few formalities to setting up and operating as a sole trader. This can keep costs down and increase profits.
−	* The sole ~~proprietor~~ can make immediate decisions, as there is no need to consult with other parties.	+	* The sole trader can make immediate decisions, as there is no need to consult with other parties.
	* The business belongs to one individual thus all profits belong to that person.		* The business belongs to one individual thus all profits belong to that person.

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	* High risk.		* High risk.
−	* Difficult to keep up with changes in ~~the~~ practice.	+	* Difficult to keep up with changes in practice.
−	* If the business fails, all debts would have to be met by the ~~proprietor’s~~ personal assets.	+	* If the business fails, all debts would have to be met by the trader's personal assets.
−	* As a small business, sources of finance may be difficult to obtain compared with larger ~~business~~.	+	* As a small business, sources of finance may be difficult to obtain compared with larger businesses.

	= Find out more =		= Find out more =

Editor at 18:49, 15 December 2017

2017-12-15T18:49:01Z

← Older revision		Revision as of 18:49, 15 December 2017
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	Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They will also need to register to pay any VAT.		Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They will also need to register to pay any VAT.
		+
		+	There are two forms of sole trader:
		+
		+	* Sole proprietor.
		+	* Sole practitioner.
		+
		+	A proprietor is usually a trader selling physical products to customers. A practitioner is usually a professionally-qualified person selling services to clients. In the construction industry this may be, an architect.
		+
		+	Architects can practice as sole traders, either with employed staff or entirely alone. Many architects choose this form of practice attracted by the freedom of conducting their own business, on their own account. This is generally considered one of the hardest forms of practice, in that they can feel very isolated from fellow professionals.
		+
		+	Advantages:
		+
		+	* Autonomy at work.
		+	* There are few formalities to setting up and operating as a sole trader. This can keep costs down and increase profits.
		+	* The sole proprietor can make immediate decisions, as there is no need to consult with other parties.
		+	* The business belongs to one individual thus all profits belong to that person.
		+
		+	Disadvantages:
		+
		+	* High risk.
		+	* Difficult to keep up with changes in the practice.
		+	* If the business fails, all debts would have to be met by the proprietor’s personal assets.
		+	* As a small business, sources of finance may be difficult to obtain compared with larger business.

	= Find out more =		= Find out more =

Editor: Created page with "A sole trader is an individual who establishes their own business in which responsibility for the running and operation of the business is theirs alone. The individual may emplo..."

2017-12-15T18:45:15Z

Created page with "A sole trader is an individual who establishes their own business in which responsibility for the running and operation of the business is theirs alone. The individual may emplo..."

New page

A sole trader is an individual who establishes their own business in which responsibility for the running and operation of the business is theirs alone.

The individual may employ others but they remain the owner of the business. It is generally considered to be the simplest way of running a business, without the need to pay any registration fees, relatively simple accounts process, and the post-tax profits can be kept by the individual.

However, the individual is personally liable for any debts which may accrue and, for businesses that require a lot of investment, it can prove a risky venture.

To set up a business as a sole trader, it requires registration with HMRC within 3 months of when operating the business began. Register with HMRC for the Construction Industry Scheme (CIS) if working in the construction industry as a subcontractor or contractor. The CIS sets out a series of rules for how contractors should make payments to sub-contractors.

Sole traders will need to keep records of the business’s sales and expenses; send an annual Self Assessment tax return; pay income tax on any profits; and acquire Class 2 and Class 4 National Insurance. They will also need to register to pay any VAT.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* CIS contractors and CIS sub-contractors.
* Construction industry scheme CIS.
* Contractor.
* Limited Liability Partnership LLP.
* Sub-contractor.
* Suppliers.
* Trade contractor.
* Types of practice for design and construction companies.
* Umbrella companies.
* Works contractor.

[[Category:Organisations]] [[Category:Cost_/_business_planning]] [[Category:Public_procedures]]