This is where two or more people are running a business together but are not a Limited Company. If your business runs as a partnership you have to do a Partnership Tax Return and each Partner also has to do a Self Assessment Tax Return.
Some Business’s decide to trade as a Limited Company, this gives the business its own Identity separate to its owners (Directors).
The Directors are then classed as employees in most cases.
If you trade as a Company, there are stricter rules regarding Accounts and the Procedures you must comply with.
You have to do an Annual Return with Companies House and Pay an Annual Fee of £13.
You have to submit accounts to Companies House within 9 months of the Companies Year End.
You also have to submit a Corporation Tax Return and Company Accounts to HMRC.
As it stands, unless you buy special software, you cannot submit the CT return and Accounts yourself as there is a special format required to upload it to the HMRC website.
Sole Traders are the simplest form of business. Normally one person, although you can still employ other people. You must register when you start trading and you need to complete a Self Assessment Tax Return for each year.