Sole Trader

Important – Sprite can only engage you as a sole trader subject to the following criteria:

  • We have had sight of the contractual chain to ensure there is no SDC (Supervision, Direction and Control) present.
  • You have the appropriate skills and qualifications to carry out your duties without the presence of SDC.
  • We have undertaken HMRC ESI (Employment Status Indictor) test and you are confirmed as self employed by HMRC.

If you're starting out as self-employed, then sole trader engagement could be a suitable option for you.

  • The business is run and owned by you and, unlike a limited company option, there is no legal distinction between the owner and the business. Since there's no legal distinction between the two, the tax implications are the same: you provide your services as an individual contractor, freelancer, or as a consultancy.
  • Setting up as a sole trader is a simple process, and you can get your business up and running in no time. You register as self-employed with HMRC, and as a sole trader you don't have to submit company accounts – but you do have to submit your own self-assessment tax return.
  • As a sole trader, you have total control of your business – but this comes with risks and responsibilities. Since there is no legal distinction between the owner and the business, you become personally liable for any business debts. The liability while supplying your services as a sole trader route is unlimited and, in some cases, your house and personal assets can be at risk.
  • The expert team at Sprite will be available to guide you at every step of the way while engaged through us as a sole trader. We will also refer you to our preferred accountancy firm IN-SYNC Tax LLP for all additional assistance with self-assessment, and non-obligation free advice on registering on the Flat Rate Scheme to increase your income.
  • You will need to advise Sprite details of your registered accountant and if you do not have one then you will need to register with IN-SYNC Tax LLP by completing HMRC's form 64-8 in order for IN-SYNC Tax to register as your agent with HMRC and confirm your self-employed status is registered and you are up to date with all assessment submissions and your payment of tax.
  • As a genuine self-employed contractor, Sprite will expect you to be registered for VAT under the HMRC FRS (Flat Rate Scheme) having passed their business test.

How you get paid as a Sole Trader?

When you register with Sprite Technical Services LLP as a sole trader, our team quickly registers you, setting you up for payments. Our payment process for sole traders is very simple:

  • The agency sends us the schedule detailing the gross amount
  • We send an invoice including VAT to the agency
  • The agency sends us the funds
  • The funds are then paid to your sole trader account, minus any appropriate deductions by Sprite

If you have any questions about our sole trader model, please call our Commercial Team on 01252 705 288 – we're happy to help!

What expenses can a Sole Trader claim?

As a sole trader, no expenses can be claimed through Sprite, but they can be collectively offset in the annual self-assessment, which IN-SYNC Tax can carry out for you.

 

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