Sole Trader vs. Limited Company for a Cleaning Business

Most people starting a cleaning business begin as a sole trader because it's the simplest structure: you can start trading immediately, and you only need to register for Self Assessment once you earn more than £1,000 in a tax year — by 5 October following the end of that tax year.

A limited company is a legally separate entity. It must be incorporated with Companies House before you trade as a company, you need at least one director, and the company registers for Corporation Tax rather than you paying Income Tax directly on profits. Partnerships suit two or more people running the business together without incorporating — each partner handles their own Self Assessment on their share of profits.

As a sole trader, you must keep records sufficient to complete a Self Assessment return (income, expenses, mileage). A separate business bank account isn't a legal requirement for sole traders, but it's widely recommended for clean record-keeping.

There's no single right answer — it depends on your growth plans, risk tolerance and how you want to be taxed. This guide isn't a substitute for an accountant's advice on your specific situation.