Sole Trader
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
SOLE TRADER
The simplest way of starting a business is to become a sole trader and many licensees use this type of business structure. Being a sole trader doesn’t mean you have to run the business single-handedly – you can employ staff! In the case of a couple running a pub, one person can be registered as the sole trader (and self-employed) and the other will be considered as staff (employed).
Pros
- Quick and easy to set up.
- Registration fees are not applicable.
- Only simple, unaudited accounts are required.
- You make all the decisions about the business yourself.
- Any profits go to you.
Cons
- You are personally responsible for any business debts.
- You need to raise any money for the business yourself.
- You are entitled to fewer social security benefits than if you were employed.
Tax and National Insurance
As a sole trader, your profits are taxed as income. You will pay fixed rate Class 2 National Insurance contributions and Class 4 contributions on your profits. You have to make an annual self-assessment return to HM Revenue and Customs.
