Sole trader
A sole trader is a self-employed person trading as themselves rather than through a company. You and the business are the same legal person: you keep the profit and you carry the risk personally.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
Almost every UK gig driver is a sole trader. There is nothing at Companies House, no annual accounts to file and no separate legal entity, just an obligation to report your profit each year.
What it means for your money
You pay income tax and Class 4 National Insurance on your profit, not on your turnover. Profit is what the platforms paid you minus what the work cost you, and mileage is usually the largest single cost.
Because there is no company between you and a claim, your insurance matters more, not less. That is an argument for the right policy rather than an argument for incorporating.
Where to read more
Registering as a sole trader, and do I need a limited company for the comparison.
Sources
Related
Registering as a sole trader: the whole process
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