A self-employed person who owns and runs their own business as an individual is referred to as a sole trader. Being a self-employed tradesman carries many advantages for the business owner, however, it’s important and advantageous for the public to know the difference between a sole trader and a registered (limited) company, such as Bugs & Sparks, especially when comparing pricing and service levels.

There are of course exceptions to the list below, however, these are just a few of the main differences we have experienced over the years which we find many people neglect  to consider when comparing quotations from different types of companies/businesses: 

The main drawbacks of using a sole trader (one-man-band tradesman) in comparison to a registered company:

  • Limited or no support structure.
  • In most cases, no company offices.
  • No or very little insurance in place should something go wrong.
  • Not VAT registered.
  • Employees/staff are not registered with the various councils and therefore are not paid the prescribed wages, provident fund, holiday fund, and leave bonuses.
  • No guarantee, or in some cases not trading anymore, should that clause need to be acted upon when something goes wrong.
  • Customer service; limited support staff causes delays when urgent responses are required, and leaves no room for after-sales service.
  • Little to no marketing actions. This can be problematic if you experience any issues with a service provider and are unable to leave a review of their services online to warn prospective customers. This also means that you most likely won’t be able to find and read past reviews before deciding between service providers.

Find out why picking an “inexpensive” contractor can prove a costly choice in the long run and what registered companies, such as ours, consider when working out costs.