3 More Years
Member
- Reaction score
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- Location
- London
I have been in business give or take about 9 years. I am based in the UK, and have always done business IT support, meaning maintenance contracts (outsourcing) b2b, until about 2 years ago. I have now completely moved to b2c, dealing with consumers or residential customers. My business is a shop where people bring computers and smart phones for repair. I have been fortunate in the sense, that I have always somehow managed to make a living.
However, ever since I can remember my accounting has always been a nightmare. I mainly blame myself. I am not very organised and hate accounting. Because of that I was willing to pay accountants to take care of it all. I mean all. However, every accountant I have had has caused me nightmares and lots of stress to the point where even though I was making money I felt like quitting business altogether.
Now for those of you who work or run a business in the UK maybe able to advise me on this. I am thinking about moving from a Limited Company status to a Sole Trader status. So I would be working under my name although my business could still be called "XYZ Computers" as an example.
It is a Vat registered. I am so tired of it after 9 years that I want to do something simple. Something I can do on my own.
I want to know what the risks of being a sole trader are? What are the pro's and con's. My business is never likely to borrow money or likely to get into debt. If it get's to that I would close it. My main worry is around paying higher tax, but I can live with that to some degree, but a bigger worry is liability. I am worried about being sued. However, i am not dealing with businesses anymore. The main reason why I originally set up as limited company was that I was dealing with businesses who would often perceive a limited company in better light. To consumers that doesn't matter or they never find out if you are a sole trader or not. Secondly with businesses there was higher risks as well of negligence etc. I am assuming with residential customers there is less risk (although I am still relatively new to it). So I am hoping that any loss will have limits. I will obviously have professional indemnity and other insurances in place. I am thinking if in a worst case scenario, I had to buy someone a computer if we accidentally broke something, I could absorb that loss. And we could get people sign a waiver of all data loss, so they give it to us at their own risk!
Do you think you can safely operate a sole trader nowadays? I have never operated as a sole trader so I am a bit worried. Please advise.
However, ever since I can remember my accounting has always been a nightmare. I mainly blame myself. I am not very organised and hate accounting. Because of that I was willing to pay accountants to take care of it all. I mean all. However, every accountant I have had has caused me nightmares and lots of stress to the point where even though I was making money I felt like quitting business altogether.
Now for those of you who work or run a business in the UK maybe able to advise me on this. I am thinking about moving from a Limited Company status to a Sole Trader status. So I would be working under my name although my business could still be called "XYZ Computers" as an example.
It is a Vat registered. I am so tired of it after 9 years that I want to do something simple. Something I can do on my own.
I want to know what the risks of being a sole trader are? What are the pro's and con's. My business is never likely to borrow money or likely to get into debt. If it get's to that I would close it. My main worry is around paying higher tax, but I can live with that to some degree, but a bigger worry is liability. I am worried about being sued. However, i am not dealing with businesses anymore. The main reason why I originally set up as limited company was that I was dealing with businesses who would often perceive a limited company in better light. To consumers that doesn't matter or they never find out if you are a sole trader or not. Secondly with businesses there was higher risks as well of negligence etc. I am assuming with residential customers there is less risk (although I am still relatively new to it). So I am hoping that any loss will have limits. I will obviously have professional indemnity and other insurances in place. I am thinking if in a worst case scenario, I had to buy someone a computer if we accidentally broke something, I could absorb that loss. And we could get people sign a waiver of all data loss, so they give it to us at their own risk!
Do you think you can safely operate a sole trader nowadays? I have never operated as a sole trader so I am a bit worried. Please advise.
