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Sole trader (UK)

In the UK a sole trader owns and runs the business as an individual, rather than through a separate incorporated company. The individual makes business decisions and bears personal responsibility for business debts. A sole trader may employ staff; the name describes the ownership structure, not the number of workers. Registration, tax and other duties depend on the circumstances.

Worked example

A self-employed designer hires an assistant but remains personally responsible for the business debts.

Common mistake

Assuming a sole trader cannot employ anyone.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA LW (ENG) Direct September 2026–June 2027