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Am I a Sole Trader or Self-Employed?


Am I a sole trader ?

According to a sole trader is someone who is classed as working for yourself. If you run a business by yourself, have multiple customers, can decide when & where to work and how much for, you are probably a sole trader.

It is possible to be both employed and self-employed at the same time, for example, if you have a day job but run your own business at night or weekends.

What can be classed as trading?

  • Making items to sell for profit such as – Art; Paintings; Furniture; Clothing.
  • Selling items regularly i.e. at car boot sales; through online classified ads; or online platforms such as eBay, Vinted, Facebook Marketplace etc.
  • Being paid for a Service you provide; such as – caring, photography, childminding, dog walking, personal training, tutoring, teaching an instrument, sewing, cleaning, gardening, hairdressing; and trades like building, plumbing and electrics etc.

Are private landlords classed as sole traders?

Landlords are classed as self-employed investors rather than sole traders.

Do I need to register for self-assessment tax returns?

If you earned less than £1000 in a year as a sole trader, it is unlikely you will need to register for self-assessment, check the website for more information.