Sole Trading Business Formation in UK

Forming a company in UK is not difficult. It does not matter whether you are a resident of UK or not. You just need to go through some simple steps when establishing an English company.

Working as a sole trader is the easiest way for starting a business. You need not notify any company house or set up a separate administrative and accounting service for you. But there are certain rules that you need to follow when you are working as self employed. Along with UK Tax return you also need to submit registration form with HMRC. When you are working as a sole trader, you will enjoy all the business profits solely. But in the limited company all profits and losses are divided among shareholders. UK tax rate on a sole trading English company is low when compared to other forms of companies. Though you will be paying less in terms of tax but you will be personally liable for all the losses arising in your company. Zen Business review

You would need to register yourself with HMRC as soon as he starts the business. After getting started, you will submit a self assessment form to HMRC annually with all the accounting records. In the April, HMRC will send you a UK tax return assessment to fill it up. It is not necessary for a sole proprietor to register himself for the value added tax (VAT) until his turnover does not cross certain limit as specified. But in case of a Limited English Company, it is necessary for them to register themselves for Value Added Tax (VAT) as soon as they start the business. You can initially start as a sole trader and if turnover or work load is increasing you can convert your business into a limited company.