How to register as self-employed in the UK.

What registering as self-employed actually means

There is no separate register of self-employed people. In the UK, you register as a sole trader by registering for Self Assessment with HMRC. That tells HMRC you have business income and need to send a tax return each year.

HMRC then uses your return to work out the Income Tax and National Insurance you owe on your profits. Registering does not create a company, and it does not change your name or your bank account. It is simply HMRC's record that you are trading.

If you already send a tax return for another reason, such as rental income, you still need to register again as a sole trader.

Are you trading, or just earning a little on the side?

GOV.UK describes trading in plain terms. You are likely to be trading if you sell regularly to make a profit, make items to sell for profit, or are paid for a service you provide. Clearing out your loft now and then is not usually trading. Making and selling goods every week usually is.

If you are unsure, HMRC's guidance is to contact them for advice before you decide.

When you must register

You can start trading without registering first. You must register for Self Assessment as a sole trader if any of these apply:

• You earn more than £1,000 from self-employment in a tax year, which runs from 6 April to 5 April
• You need to prove you are self-employed, for example to claim Tax-Free Childcare
• You want to pay voluntary Class 2 National Insurance to protect your record
• You need to register as a Construction Industry Scheme (CIS) subcontractor or as a share fisher

You can also choose to register earlier, before you reach any of these points.

The £1,000 trading allowance

The trading allowance is a tax exemption of up to £1,000 a year on trading income. If your gross trading income is £1,000 or less, you usually do not need to tell HMRC. "Gross" means your income before any expenses come off. Earning £1,400 and spending £600 still puts you over the limit.

There are exceptions. You must still register if you have made a loss and want tax relief on it, or you want to claim Maternity Allowance. The allowance also does not cover income from a company or partnership you or a connected person controls, or work done for your employer or your spouse's or civil partner's employer. Even under the allowance, you must keep records of your income.

The registration deadline

You must tell HMRC by 5 October after the end of the tax year in which you need to file. For the 2025/26 tax year, that deadline was 5 October 2026. It applies if you have never sent a tax return, or if you registered before but did not need to send one for 2024/25.

Missing it matters. If you register late, or do not register when you need to, you may get a penalty.

A worked example

What you need before you start

Registering is done online on GOV.UK. Before you begin, have these ready:

• Your National Insurance number. You need one to register. If you do not have one, apply for it first.
• Sign in details. If you do not already have HMRC sign in details, you can create them during the process. You may be asked to prove your identity, usually with photo ID.
• Basic business details. What you do, when you started and your business name, if you use one.

If you registered in the past but stopped filing, you will need to reactivate your existing account rather than start again. HMRC warns that filing without reactivating it can delay your return.

How to register, step by step

• Step 1: Check you need to. Use the points above, or GOV.UK's own checker, to confirm you must file a return.
• Step 2: Go to the GOV.UK page for registering as a sole trader and select "Start now". The route you are shown depends on your circumstances.
• Step 3: Sign in or create your sign in details, and prove your identity if asked.
• Step 4: Answer the questions about your work, including the date you started trading.
• Step 5: Wait for your Unique Taxpayer Reference (UTR). It usually arrives by post around 15 days after you register. It takes longer if you live abroad.

Keep your UTR safe. You need it to file your tax return. Once issued, you can also find it in your personal tax account, in the HMRC app, and on letters such as notices to file.

Choosing a business name

You can trade under your own name or a trading name. If you choose a trading name, it must not:

• Include "limited", "Ltd", "limited liability partnership", "LLP", "public limited company" or "plc"
• Be offensive
• Be too similar to another company's trademarked name

You must show your own name, and your business name if you have one, on official paperwork such as invoices and letters. Our guide on how to make an invoice template covers what else an invoice should include.

National Insurance once you are registered

Most self-employed people pay National Insurance through Self Assessment, alongside Income Tax. For 2026/27, the rules are:

• Profits under £7,105 a year. You do not have to pay anything. You can choose to pay voluntary Class 2 contributions of £3.65 a week to protect your National Insurance record.
• Profits of £7,105 or more. Class 2 contributions are treated as paid, so you do not pay them but your record is protected.
• Profits over £12,570. You pay Class 4 contributions of 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270.

Your first tax return and payment

You can file your return from 6 April, once the tax year has ended. For the 2025/26 tax year, the deadlines are:

• Paper return: 11:59pm on 31 October 2026
• Online return: 11:59pm on 31 January 2027
• Paying the tax: 11:59pm on 31 January 2027

A return that is filed late gets an initial £100 penalty, with more if it is later still. Tax paid late attracts penalties and interest.

Payments on account

After your first year, you may also need to make payments on account. These are advance payments towards next year's bill, due by midnight on 31 January and 31 July. They apply unless last year's Self Assessment bill was less than £1,000, or more than 80% of your tax was already paid another way, such as through your tax code. Your first January payment can be larger than expected for this reason, so it is worth setting money aside from the start.

Other things to check when you start

• VAT. You must register if your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone. You can register earlier by choice.
• Making Tax Digital for Income Tax. Sole traders and landlords with qualifying income over £30,000 in 2025/26 will need to use it from 6 April 2027. Those over £20,000 in 2026/27 will need to use it from 6 April 2028. See our guide on what Making Tax Digital means for the self-employed.
• Licences, premises and staff. Some trades need licences or permits. Premises can bring business rates, and taking on staff brings payroll duties.
• Liability. As a sole trader you are personally responsible for the business's debts, so business insurance is worth considering.

Keep records from your first sale

Once you start trading, you must keep records of your business income and expenses. They are what your tax return is built from. You must keep them for at least 5 years after the 31 January submission deadline of the tax year they relate to. When you stop trading, see how to stop being self-employed.

Since the 2024/25 tax year, cash basis has been the default accounting method. You record income when money comes in and expenses when you pay them. Our guide on cash basis or traditional accounting explains the choice.

A few habits make the first year much easier:

• Use a separate bank account for business money, so personal spending does not mix in
• Keep every receipt and invoice, ideally as a photo or PDF on the day
• Note what each payment was for while you still remember
• Check which costs count before you claim them, using our guide to self-employed expenses
• Put aside a share of each payment for tax and National Insurance

Our guide to self-employed record keeping goes into more detail, and how long to keep business records covers storage.