Trading as a sole trader or a partnership is a very common way to run a business. It is a relatively simple process and a great way to start a business.

For businesses with a turnover of less than £30,000, HM Revenue and Customs will accept a "three-line profit and loss account". Whilst easier to prepare than a full set of accounts, it remains important that all your expenses are eligible and, moreover, you have captured all the expenses of operating your business - thus minimising the tax you pay.

However, for more profitable businesses these entities can often be less tax-efficient and do not afford the sole trader or partners the protection of limited liability.

Recent changes to the "Capital Allowance" regime have created the opportunity to reduce your taxable profit significantly. Combining these with Working and Child Tax Credits, careful planning can potentially result in HM Revenue and Customs in effect paying for vans or farm equipment.

All of these benefits result from using qualified tax professionals with real-world practical experience.