Am I A
Sole Trader, Contractor Or A Business
A business is a system designed to obtain benefits through the performance of an activity, the sale of products, or the provision of a service that we can offer to other people. It refers to how a person or organization obtain money in exchange for products or services.
Some business examples may be a mechanic who acquires a store and tools to earn money by repairing vehicles. Then creates a website to sell cosmetic products online or a news portal that has many readers and sells advertising space to advertisers. Here, each of the businesses is different models and ways to earn money.
Businesses form into companies, and, a company is an entity or organization created by one or several people to obtain money through the production and marketing of products and services to customers. It refers to the legal aspect and the characteristics that the organization has.
As mentioned above, a sole trader is not legally required to register with Companies House. Therefore, the business can keep a lid on information about it. You can achieve greater privacy as no information of activity is needed to be given out.
RECRUITMENT COMPANIES DO NOT HIRE SOLE TRADERS AS CONTRACTORS
According to the Income Tax (Earnings and Pensions) Act 2003, an agency cannot hire you as a contractor between their clients. Which is because then the agency would have to treat you as an “employee” and in that case, you will be entitled to bear income tax and National Insurance Contributions (NIC) from your earnings. For this reason, employers do not generally prefer hiring sole traders for contractual work.