How to Register as Self-Employed in the UK: A Step-by-Step Guide

ByAnita Updated on

Registering as self-employed is one of those things that sounds more complicated than it actually is. Once you know the steps, the whole process takes less than 20 minutes online — and HMRC makes it straightforward.

I’m Anita — a Chartered Accountant who went self-employed myself. This guide breaks it all down clearly so you can get it done quickly, get your records set up properly from day one, and get on with running your business.

Disclaimer: I’m an accountant, but I’m not your accountant. This guide is for information purposes only. Everyone’s situation is different, so if you’re unsure about anything, speak to a qualified professional.

Do You Need to Register as Self-Employed?

Before you register, it’s worth understanding the rule that determines whether you need to.

The £1,000 Trading Income Allowance

If you earn £1,000 or less from self-employment in a tax year, you don’t need to register with HMRC or file a Self Assessment tax return — this is covered by the trading income allowance.

It’s a useful buffer if you’re testing a business idea or earning from a small side hustle. One thing worth knowing: if your business expenses are higher than £1,000, you may actually be better off registering and claiming those expenses instead — it could reduce your tax bill.

Once your income exceeds £1,000, registration is required.

Read => Self Assessment Tax Return for Sole Traders: A Step-by-Step Guide

When Is the Deadline to Register?

You must register with HMRC by 5 October following the end of the tax year in which you exceeded the £1,000 threshold.

The UK tax year runs from 6 April to 5 April each year.

Example: If you earned more than £1,000 during the tax year ending 5 April 2026, your registration deadline is 5 October 2026.

Don’t leave it to the deadline — register as soon as you start trading properly. There’s no benefit to waiting and it avoids any risk of a late registration penalty.

Read => Self Assessment Deadlines for Sole Traders: Key Dates 2026/27

How to Register as Self-Employed Online: Step by Step

Step 1: Get Your Information Together

Before you go to the HMRC website, have the following ready:

  • Your National Insurance number
  • Your personal details (name, address, date of birth)
  • Your business start date — the date you first started trading or earning self-employed income
  • A brief description of what your business does

Step 2: Go to the HMRC Website

Visit HMRC’s Self Assessment registration page and follow the steps to register. You’ll be creating a Government Gateway account if you don’t already have one, or logging into an existing one.

If you’ve been self-employed before and have an old account, you’ll have the option to reactivate it rather than starting from scratch.

Step 3: Complete the Registration Form

Follow the on-screen instructions to provide your personal and business details. It’s straightforward — HMRC has made this process much simpler in recent years.

Step 4: Receive Your UTR Number

Once registered, HMRC will send you a Unique Taxpayer Reference (UTR) — a 10-digit number that identifies you for tax purposes. Keep it safe; you’ll need it every time you file a tax return.

How long does it take? Your UTR usually arrives by post within 15–21 days, but you can find it sooner in the HMRC app once your registration is processed. When it arrives, your registration is complete — you’re officially self-employed.

Step 5: Set Up Your Records From Day One

This is the step most people skip — and it causes the most pain later. Start tracking your income and expenses from the moment you begin trading, not just from when you get your UTR.

Good record-keeping means your tax return is straightforward, you claim everything you’re entitled to, and you always know where your business stands financially.

Club deal: Members of The Self Employed Club get exclusive discounts on accounting software that makes record-keeping simple and keeps you MTD-ready. See the current deals →

What Taxes Will You Pay as a Sole Trader?

Once you’re registered, you’ll be responsible for three potential taxes:

Income Tax

Paid on your profits (income minus allowable business expenses) above the personal allowance. The personal allowance for 2026/27 is £12,570 — you don’t pay Income Tax on profits below this.

National Insurance Contributions (NICs)

  • Class 4 NICs — paid on profits between £12,570 and £50,270 at 6%, and above £50,270 at 2%
  • Class 2 NICs were abolished from April 2024 — you no longer pay these

VAT

Only relevant if your taxable turnover exceeds £90,000 in any rolling 12-month period — at that point, you’re legally required to register for VAT. You can also register voluntarily before you hit the threshold, which can make sense in certain situations.

Read => Self-Employed Tax: How It Works and What You Need to Know

What To Do After You’ve Registered

Open a Business Bank Account

You’re not legally required to have a separate business account as a sole trader — but it makes a real difference. Keeping your business and personal finances separate means cleaner records, easier tax returns, and a much clearer picture of how your business is actually doing.

There are some excellent free business bank accounts designed specifically for sole traders. The Self Employed Club has deals on business banking — worth checking before you open an account anywhere.

Get Your Accounting in Order

Whether you use accounting software or a spreadsheet, having a system in place from day one saves significant time and stress at tax return time. With Making Tax Digital now live for sole traders earning over £50,000 — and coming for everyone else over the next couple of years — digital record-keeping is increasingly the sensible default.

Club deal: Get exclusive discounts on Xero and other accounting tools through The Self Employed Club →

Read => Making Tax Digital: What Sole Traders Need to Know

Understand What Expenses You Can Claim

One of the most valuable things you can do as a new sole trader is understand what business expenses you’re allowed to claim — things like equipment, software, travel, and home office costs. Every legitimate expense reduces your taxable profit and therefore your tax bill.

Read => Allowable Expenses for Sole Traders: The Full List

Mark Your Tax Deadlines

You’ll need to file a Self Assessment tax return every year. The key dates to put in your diary:

Deadline

What it’s for

5 October

Register for Self Assessment (if you haven’t already)

31 January

Online tax return filing deadline + pay any tax owed

31 July

Second payment on account (if applicable)

Missing these deadlines results in automatic penalties — mark them now.

What’s Next?

Registering is just the beginning. If you’re in the early stages of setting up, these posts cover the next steps:

And once you’re up and running, The Self Employed Club is a free, members-only platform with handpicked deals on the tools, software, and services UK sole traders actually use. No catch — just savings.

Join The Self Employed Club free →

FAQs

What information do you need to register as self-employed?

Your National Insurance number, personal details, business start date, and a brief description of what your business does. That’s it.

How long does it take to register as self-employed?

The online registration itself takes around 10–20 minutes. Your UTR number then arrives by post within 15–21 days, though you can often find it sooner in the HMRC app.

What is a UTR number?

A Unique Taxpayer Reference — a 10-digit number HMRC uses to identify you for tax purposes. You’ll need it every time you file a Self Assessment return.

Can I register as self-employed if I’m still employed?

Yes — many people run a self-employed business alongside a full-time job. You’ll need to track your self-employed income separately and include it in your Self Assessment tax return each year. Read more about how to become self-employed here.

Do I need a business bank account as a sole trader?

It’s not a legal requirement, but it’s strongly recommended. Keeping business and personal finances separate makes your bookkeeping cleaner and your tax return much easier to complete. Check current business banking deals in The Self Employed Club →

What is the £1,000 trading income allowance?

It means you can earn up to £1,000 from self-employment in a tax year without needing to register or file a tax return. If you earn more than £1,000, registration is required. If your business expenses exceed £1,000, it may be worth registering anyway to claim them.

When do I need to register for VAT?

When your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily before that point if it makes financial sense for your business.

What taxes do I pay as a sole trader?

Income Tax on profits above the personal allowance (£12,570 for 2026/27), and Class 4 National Insurance Contributions on profits above the same threshold. VAT only applies if you exceed the £90,000 turnover threshold. Read the full guide to self-employed tax →

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About the Author
A
Anita Forrest
Chief Deal Hunter
Anita is a Chartered Accountant who went self-employed herself and quickly realised how much harder it is than anyone admits. She created The Self Employed Club to give sole traders access to the deals and knowledge usually reserved for bigger businesses. She knows the reality behind the spreadsheets — and that's exactly who she writes for.

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