what tax benifits do i get for being a sole trader?

Answer 1

Not as many as you get for being a Soul Man...

Answer 2

I assume you are comparing the position of a sole trader with that of an employee?

National insurance contributions are slightly lower although the difference is not that great and certain benefits are lost.

The main difference is in claiming tax relief on expenses incurred. To use the official jargon a self-employed person can claim (subject to a few specific exceptions) any expense which is wholly and exclusively incurred for the business.

The employee, on the other hand, can only claim expenditure which is wholly, exclusively AND NECESSARILY incurred in the performance of his duties. That wording is very restrictive and means in practice that few expenses can be claimed.

Answer 3

It depends on many things but in essence you can offset anything that you have to pay for for your business.
Special clothing, tools, materials, advertising, if you run a van all of that expense. If you run a car generally only a proportion as the taxman will see that as something you can use privately. You just have to argue the percentage claimed. If you work from home you can claim for office space in your house. But beware when you sell the house you can be clobbered for capital gains tax.
The flip side is that you are totally responsible for the the business and your house could be under threat if you don't pay bills or go bust. It's a trade off but worth it if you have a good business. My advice...get a good accountant they are worth their weight in gold.