After speaking to my accountant.., I decided to go the Ltd route.. There's pros and cons for sole trader or Ltd.. As a director, I pay myself the minimum to use the tax threshold..., then make up the difference as a directors dividend (pay less tax) I spent ages researching what would suit me... VaT registered is my next step.., easy enough, for a small fee my accountant does everything... As I said, it took me 16 months of planning and aquiring tools of the trade.. There's no rush as you have a job.., so allowing you to grow at the speed that suits you..