Difference between Sole Trader and Limited Company

One of the biggest drawbacks to operating as a sole-trader is the unlimited liability – there is no separation between the owner and the business itself, which means the owners assets are at risk to creditors.

Both sole traders and owners of limited companies must submit self-assessments to HMRC, limited companies must also submit annual accounts to Companies House and submit their Corporation Tax to HMRC.

Thankfully we at MTD are here to take on these accounting and administrative tasks and we ensure to make the whole process a breeze so that you can focus on your responsibilities which you do best!

Do note though that if you did choose to become a limited company it would work out more profitable for you due to better tax efficiencies, if your turnover goes over a certain threshold. Get in touch with us if you need assistance considering your options.