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
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |
