Being a Sole Trader on Worksome 🇬🇧
All you need to know about being a Sole Trader at Worksome
What is a sole trader?
If you're a sole trader, you run your own business as an individual and are self-employed. You can keep all your business's profits after you've paid tax on them. You're personally responsible for any losses your business makes. To set up as a sole trader, you need to tell HMRC that you pay tax through Self Assessment and file a tax return every year.
Can I work as a sole trader on Worksome?
Yes — sole traders are welcome on the Worksome platform in the UK. Whether you can be paid gross as a sole trader depends on the outcome of our UK Sole Trader Classification assessment (see below).
How does Worksome determine if I can be classified as a self-employed sole trader?
Worksome uses a Sole Trader Classification assessment to determine whether a worker can be classified as a self-employed sole trader and paid gross. The assessment is completed by the hiring company (your client) and looks at the actual working relationship — not just your business entity type or any certificates you hold.
The assessment examines key employment status factors including:
Control — how much say the client has over how you do your work
Substitution — whether you could send someone else to do the work in your place
Financial risk — whether you bear financial risk for the quality of your work
Mutuality of obligation — whether there is an ongoing expectation of work being offered and accepted
Exclusivity — whether you are free to work for other clients at the same time
Integration — how embedded you are in the client's business and team structures
The outcome of the assessment determines whether you can be paid gross as a sole trader. This approach aligns with how HMRC evaluates employment status in practice — focusing on the reality of the working relationship rather than paperwork alone.
What if I hold a Lorimer letter or appear on the HMRC broadcasting roles list?
These can be useful supporting context but they do not automatically confirm sole trader status and do not replace the classification assessment. HMRC does not treat either as determinative — status is still assessed on a case-by-case basis, looking at the actual working relationship. If you hold either of these, please let your hiring company or account team know and they can note it alongside your assessment.
Why won't some companies work with sole traders?
Some businesses prefer not to engage sole traders due to the compliance responsibilities involved. Under UK law, if a worker is assessed as employed rather than self-employed, the engaging business may be responsible for ensuring the correct tax treatment is applied. The Worksome classification assessment is designed to give both you and the hiring company confidence that the arrangement is correctly documented and defensible.
What are the risks of being a sole trader?
As a sole trader, your personal and business assets are not legally separate — unlike if you were operating through a Limited Company (PSC). This means that in the event of a dispute or legal claim, your personal assets could potentially be at risk. It is worth considering professional indemnity insurance if you do not already have it.
What does Worksome need from me?
Make sure your Worksome profile is up to date:
Set your Business Entity to Sole Trader in your Freelancer Settings
Include your UTR (Unique Taxpayer Reference) number — this is required for sole trader engagements in the UK
Ensure your profile accurately reflects how you operate, as this supports the classification process
Still have questions?
If you have any questions about your sole trader status or the classification process, please reach out to our support team at hello@worksome.com or contact your account team — we're happy to help.