What’s the difference between a sole trader and a limited company?

As a freelancer, should you operate as a sole trader or a limited company? Andy Chamberlain, Director of Policy at IPSE (The Association of Independent Professionals and the Self-Employed) discusses some advantages and disadvantages of both options.

Should I operate as a sole trader or limited company?

As Andy explains, operating through a limited company can give you more flexibility in terms of how you handle your income. However, there are more compliance burdens on limited companies. Sole traders avoid such heavy compliance requirements.