I’m setting up shopify payments but don’t want to fall foul of shopify payment rules, The application asks Individual or business? I assume individual is not a sole trader and as a (planned) sole trader I should tick business?
I have been self employed in the past, 30 years as a sole trader but in a different business to the one now planned. I have had a break from self employment whilst renovating a property and have not had to submit a self assessment return for the past five years. I have a UTR, Unique Tax Payer reference number but as my new business is not trading and does not yet need to be registered with HMRC, should I hold off from applying for shopify payments until I have re-registered for self assessment? I’m not sure what criteria Shopify will set and don’t want to cause issues with either the application, or at a later date, with processing payments. What are other peoples experiences, did you first have to register for self assessment and then apply for shopify payments?
Great question — it’s wise to think ahead before submitting anything to avoid complications later.
If you’re setting up as a sole trader, you should typically select “business” on the Shopify Payments application, as “individual” is more suited to freelancers or informal sellers without a business structure. As a sole trader, you’re considered a business entity, even if you’re not yet trading.
Since you already have a UTR, that’s a good start. However, Shopify Payments may still require confirmation that you’re currently registered for Self Assessment with HMRC, especially when it comes to verifying your business details and tax status. If your business hasn’t officially started trading yet, it might be worth waiting until you’re fully re-registered and have confirmation from HMRC — just to avoid any delays or issues during verification.
That said, if you’re concerned about meeting Shopify Payments’ criteria — or want a more flexible alternative — you might consider using WallidPay (https://apps.shopify.com/wallidpay)
It’s a UK-based payment gateway that allows customers to pay directly through their bank, with fewer restrictions and a simpler setup process. It works well for sole traders, startups, and even businesses in categories that are sometimes flagged by traditional processors.
Hope that helps, and best of luck getting your new venture off the ground!