Do I need to register as a sole trader?

Most people opt for sole trader status when they first become self employed. Sole traders enjoy a lot of freedom that company directors or partners do not; profits are taxed as regular income, and you need not worry about corporation tax or Companies House.

The other most important benefit of sole trader status is that it requires no registration. You do not need to register with Companies House or any other authority in order to become a sole trader.

It is important to remember, though, that you will need to register as self employed with HM Revenue and Customs. You must do this within three months of becoming self employed.