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The assets and liabilities of the owner and those of the business are the same. There are no legal or tax distinctions between the owner and business.
This type of business is straightforward to set up and dissolve. It requires the minimal legal requirements and costs. The owner can make all the decisions and can retain all the profits. He owns all the assets of the business.
The owner can draw or invest funds into or out of the business, as he deems necessary.
Business losses can be offset against other income, including claw back of past pay as you earn (PAYE). As the sole trader is self-employed, he is able to defer Income Tax and reduce his National Insurance contributions...
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