Three Legal Tips For Sole Traders

We don’t need to tell you how stressful the last year or so has been for sole traders.

We have been through furloughs and lockdowns and waited patiently for the government to figure out its support schemes. As we head into a more optimistic summer, there is still a lot of uncertainty, and you are going to need to make sure that you have all your bases covered. As a sole trader, you are constantly hustling to find new leads, to get your work to the highest possible standard in for the deadline, and to keep getting the word out about your business. But a legal slip-up could land you in some serious hot water. Here are a few tips to help you keep moving forward.

Get Organised

Let’s start with a simple one. No two sole traders are the same, but what most have in common is that time doesn’t tend to be on their side. With that being the case, it’s easy for things to get missed. If you want to make sure that you are on firm ground, legally speaking, the first thing you need to do is to get everything in order. Everything from your payslips and contracts to the receipts for any work-related expenses needs to be carefully categorised and easy to find.

Know When To Talk To A Professional

There are many benefits to being a sole trader. You’re flexible, you’re agile, you’re your own boss. What you don’t have is a legal department that has your back if one of your clients decides that they want to kick up a fuss. There are always going to be small disagreements in business, but it’s important to recognise the moment when a dispute isn’t going to be reconciled with an apology or an explanatory phone call. If you find yourself in a situation where commercial litigation is on the horizon, then it’s time to call a solicitor. Ashwood Solicitors offer a free initial consultation and a no-obligation quote, and they can provide advice on a wide range of issues.

Stay On Top Of Your Debts

One of the best ways to stay out of legal trouble when you’re a sole trader? Paying your bills on time. Sole traders are offering juggling several different contracts at any one time, and we have all needed a little extra financial help to stay afloat during the pandemic. It is so important that you don’t fall behind on any payments and that you read every single agreement very carefully.

If you know that numbers are an area where you struggle, then it may be well worth talking to a professional accountant. They will also be able to help you benefit from any local or national grants. They will also be able to help when it’s time to pay your taxes. Self-assessment deadlines cannot be missed (even if millions cut it very fine this year) and if you have a registered company then you need to know whether you are going to have to pay VAT or not. Read the government guidelines to be on the safe side.