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A sole trader is the simplest type of business structure defined in UK law. It refers to an individual who owns their own business and retains all the profits from it. When starting up, sole traders must complete a straightforward registration with HM Revenue and Customs as self-employed for tax and National Insurance purposes.They are responsible for maintaining the businesses records and submitting an annual Tax return for all income from self-employment and other work.
The sourse site for this is http://en.wikipedia.org/wiki/Sole_Trader_Insolvency
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