sole trader

[Boudica]

i have a little bit of admin work and the client would like me to be a sole trader, has anyone ever done this before?

also, she will want a small LAN set up soon, is anyone interested in doing this? spod?

[SupremeSpod]

i have a little bit of admin work and the client would like me to be a sole trader, has anyone ever done this before?

also, she will want a small LAN set up soon, is anyone interested in doing this? spod?

Never gone the sole trader route. Always had to be Ltd or Umbrella. There could be tax implications for your client.

Why the Sole Trader request?

With regards to the LAN setup you'd be better finding someone local to your client so that support/troubleshooting would be easier.

Thanks anyway.

[Boudica]

i am not sure, it is just what she preferred, she uses a lot of 'consultants' of the educational variety and seems it is what they do.

do you set up LANs?

[SupremeSpod]

i am not sure, it is just what she preferred, she uses a lot of 'consultants' of the educational variety and seems it is what they do.

do you set up LANs?

It's not really my bag but thanks.

[Boudica]

thanks doggy x

[MarillionFan]

thanks doggy x

It's not really clear. But Spod. Can you just confirm. Do you setup LANS?

[Clare@InTouch]

The sole trader bit would be a pain - you'd have to declare it on an extra page on your tax return and potentially pay more tax and NI. To her, it makes no difference if you're Limited or sole trader so maybe worth trying to put your foot down and insist on being Limited.

Plus - there's actually more risk to her if you're a sole trader, as if HMRC investigate and decide you should have been an employee then the penalties and extra tax will fall on her rather than on you (which is why agencies won't touch sole traders with a barge pole).

[SupremeSpod]

It's not really clear. But Spod. Can you just confirm. Do you setup LANS?

[centurian]

The sole trader bit would be a pain - you'd have to declare it on an extra page on your tax return and potentially pay more tax and NI. To her, it makes no difference if you're Limited or sole trader so maybe worth trying to put your foot down and insist on being Limited.

Plus - there's actually more risk to her if you're a sole trader, as if HMRC investigate and decide you should have been an employee then the penalties and extra tax will fall on her rather than on you (which is why agencies won't touch sole traders with a barge pole).

You basically end up paying 8% employee's NI up to 40K-ish, and the 1% thereafter. There is no employers NI to pay. Accountancy fees should be considerably less.

So you end up paying more than Ltd outside IR35, but much less than inside IR35. However, you have zero worry about IR35. Personally I would bite their hands off if clients would offer me sole trader.

Another consideration is liability. If you work through a Ltd, you are shielded by the LtdCo. As a sole trader, you can be personally held liable, so make sure you have up-to-date insurance.

[Boudica]

thanks