liability / 1 posts found

Self-employed liability

by mike tombs
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If you are a sole trader, or in a basic partnership, and if your business gets into financial difficulties, any liabilities that cannot be covered by the disposal of business assets may have to settled out of personal assets. In accountancy speak, you have unlimited liability; there is no protection for your personal assets. You have options. The Office for Tax Simplification has suggested, welcomed, the idea that sole traders can elect for a form of limited liability status that will allow them to protect their homes from any claim by business creditors. At present, this is pure conjecture. Mr [...]