Sole Trader - rules on no. of clients required

H

Harjul

Guest
I am thinking of setting up as a Sole Trader but it is likely that for the first year at least I will have only one cilent. Someone told me that to register as a Sole Trader you must have at least 3 clients. Does anyone know if this is correct? Thanks!
 
Thats a load of rubbish!

I'm registered as a sole trader and there is no such requirement.
 
Please don't take anymore advice from that person!!

Once you have a trade you must register with Revenue on Form TR1. A trade would commence when you start investing time and money in it, even if no sales yet.
 
I know of no such requirement, although I don't think I've ever had under three clients in any one year.

ONQ.
 
Absolutely agree. Contact the Revenue and they will send you out an information pack on what is required. process is very simple but you will need to know your requirements in respect of tax returns.
 
Thanks All. I thought it sounded a bit off. I'll get on to revenue for full all requirements...
 
Depending on the type of work you are doing etc, if you have only one client then there is a possibility that Revenue will deem that you are actually an employee of your "client" as opposed to a sole trader.

There's a lot more to consider in this area than just how many clients you have but perhaps this is what your friend was alluding to
 
If the OP's question relates to whether Revenue will treat him/her as a sole trader or a de-facto employee, they need independent advice on their status. Going to Revenue for such advice is imho pointless as Revenue will pretty much automatically categorise him/her as an employee, unless there is compelling evidence to the contrary. Note that this treatment will generate a higher tax yield for Revenue coffers.
 
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