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There is a newer version of this publication available:
Debt Advice Handbook Scotland 1st ed - with new material

2. Types of small business
Most self-employed clients that debt advisers deal with run their businesses on their own. However, their situations can vary greatly. For example, a client who says they ’just work for themself’ may be set up as a sole trader or director of a limited company. It is important to identify how a client is set up in business (their trading status) because this affects which debts, they are liable for and when specialist advice is needed.
Trading status also affects the type of financial statement a client must complete.
There should be one for the business and one for the client.
If a client is unsure of their trading status, they could ask their accountant or bookkeeper for information. If this is not available, signpost the client to specialist business advice.