Can a sole trader use a trading name?

Yes. A sole trader can trade under a name such as "Smith Plumbing & Heating" without registering it. As checked on 17 October 2026, it cannot end in "Ltd", some words need approval, and your own name must go on invoices.

The rules come from Part 41 of the Companies Act 2006 and two sets of regulations made under it. Companies House guidance says business names are not registered under the Act, so there is nothing to file with Companies House before you start using one. What matters is choosing a name you are allowed to use, and showing who is behind it.

Which names count as a business name

Section 1200 of the Act says a business name is any name other than your surname, on its own or with your first name or initials. Once you trade under anything more, the naming and disclosure rules below apply.

The naming rules

GOV.UK's sole trader guide says your business name must not:

• include "limited", "Ltd", "limited liability partnership", "LLP", "public limited company" or "plc"
• be offensive
• be too similar to another company's trade-marked name

The 2015 names regulations also bar any name that includes a label such as "CIC" or "LP", anywhere in the name, unless the business is that kind of body.

Sensitive words. The 2014 sensitive words regulations list words you cannot use in a business name without approval. Bank, British, Royal, Association, Accredited, Trust and England are all on the list. Companies House says you send your request to it, with a letter from the relevant body where its guidance asks for one, and that using a sensitive word without approval is an offence. Names that suggest a link to the government or a local authority are restricted too.

What you must show, and where

Sections 1201, 1202 and 1204 of the Act say that, when you trade under a business name, you must show your own name and a UK address where documents about the business can be served:

• on business letters, written orders, invoices, receipts and written demands for payment
• on a notice in a prominent position at any premises where you carry on the business and customers or suppliers can come in, so they can easily read it
• in writing, straight away, to anyone you deal with who asks for it

GOV.UK's invoicing guide puts the same rule simply: your name, any business name, and an address where legal documents can be delivered to you. Our invoice guide has a sample layout. Breaking these rules without a reasonable excuse is an offence under section 1205. Under section 1206, if you sue to enforce a contract made while you were breaking these rules, the court must dismiss your claim if the other side shows the missing details cost them money or stopped them bringing a claim of their own, unless it thinks it just and equitable to let your claim continue.

What this means for you

Your trading name is a label. In law the business is still you, so your tax, your Unique Taxpayer Reference (UTR) and your National Insurance number do not change.

HMRC still needs to know the name. When you sign up for Making Tax Digital for Income Tax (MTD), GOV.UK asks for your business name and says it is "the name you use on your invoices". HMRC holds it as the trading name of your self-employment business, and MTD software can read it from there. If you change the name later, GOV.UK says you must tell HMRC, which you can do through your HMRC business account for every service apart from the Construction Industry Scheme (CIS). For CIS, GOV.UK says to call the CIS helpline.

CIS is separate. When you register as a subcontractor, GOV.UK asks for your legal business name and lets you add a trading name if it is different. Contractors verify you with your UTR and National Insurance number, and the details must exactly match the ones you registered with. GOV.UK says to give each contractor the exact UTR and legal business or trading name you registered with. If they cannot verify you, they take 30% instead of 20%.

A trading name gives you no ownership of it. Unregistered, the Intellectual Property Office says your remedy is a "passing off" claim, which needs goodwill, a misrepresentation and damage, and can be very difficult and expensive to prove. Registering a UK trade mark online costs £205 for one class of goods or services, plus £60 for each extra class, and it lasts 10 years before you must renew it. On banking, GOV.UK says you might be able to use a personal or business account, and to check with your bank which type you can use.

Steps to set up a trading name

1. Shortlist a few names and check each one on GOV.UK's trade mark search, so you are not too close to someone else's brand.
2. Check that none ends in "Ltd" or includes "plc" or "LLP", and none uses a sensitive word. If one does, get approval through Companies House before you use it.
3. Set up your invoice and letter templates with your own name, the trading name and an address for documents, for example "John Smith trading as Smith Plumbing & Heating".
4. Put a notice with the same details anywhere customers or suppliers visit you, such as a workshop or yard.
5. Give HMRC the trading name when you sign up for MTD or register for CIS, and tell HMRC if it changes. For CIS, call the CIS helpline, because the online business account does not cover it.
6. Ask your bank which account you can use for business payments, and keep business money in one place so your records stay simple.
7. If the name becomes valuable to you, consider registering it as a trade mark.

The free MTD check shows when Making Tax Digital starts for you, and the trades section has more guides.