A sole trader is a business run by one owner. The individual must register as self employed within 3 months of commencing to trade and will be required to make class 4 national insurance deductions of £2.40 per week (unless the expected profit within the business is likely to be £5,045 or less). Sole trader status means that the individual is responsible for the debts of the business and is liable to pay tax at 20% and NI at 8% on all profit, subject to other income and the tax free allowance of each individual.