Setting Up As Sole Trader

[enfable]

I am currently unemployed but am in the process of becoming a sole trader in the next couple of months.

If I was to buy a vehicle now, before i am a sole trader, would I be able to sell it to the company I set up? Or would it be better to set the company up now (the business will not be trading for c2 months) and put the vehicle through the books?

What would I have to do regarding insurance if I buy now and sell to the company when trading?

Thanks

[pixie373]

If you keep all receipts etc, you can offset it in tax if you've bought it in the last 5 years. There seems to be a choice between claiming mileage allowance OR car expenses, so whichever works best for you.

[buildersmate]

Your question is an oxymoron. If you become a sole trader, you are self-employed and so you don't set up any company.

[pixie373]

I'm confused at that BM. My sister and i are self-employed and have a company.

[naomi24]

buildersmate is right. To be self-employed it's not necessary to set up a company.

[pixie373]

How do you register it? Don't the forms ask for Company name? They do on partnership ones.

[enfable]

You set up through HMRC through the National Insurance or Tax departments. They need to know your Trading Name. Trading Name of a business to be would mean a non-ltd company.

[pixie373]

Yes, that's what we did.

[factor-fiction]

According to the Gov.uk site:

"Sole traders
If you’re a sole trader, you’re running your own business as an individual. This is known as being ‘self-employed’. You can keep all your business’ profits after you’ve paid tax on them.You can take on staff - ‘sole trader’ means you’re responsible for the business, not that you have to work alone."

[pixie373]

Methyl, daft question then, but what is a "company"? Or what is the difference?

[enfable]

This business expert states,

'The first step to becoming a sole trader is to choose a company name.'

http://www.smallbusiness.co.uk/starting-a-business/ideas-and-business-planning/22779/how-to-become-a-sole-trader.thtml

[enfable]

Methyl, my good sources are Google and HMRC.

I intend to set up as a sole trader initially, so more time can be focused on the day to day running of the business and saving costs. I intend to readdress whether to become Ltd once the business has been trading for a while.

Hope that makes sense.

[enfable]

I don't intend trading outside of the UK. However, I have already registered a domain name to match the business name. This does not have Ltd at the end though.

[1eyedjack]

"This business expert states,

'The first step to becoming a sole trader is to choose a company name.' "

Well, that must be right, then. Read it on the internet.