How to Register as Self-Employed in the UK
Thinking of going it alone and becoming your own boss? Whether you’re freelancing, contracting, or building a small business from scratch, one of the first legal steps you’ll need to take is to register as self-employed with HMRC.
While the process itself is fairly straightforward, accuracy matters. Registering late, submitting incorrect details, or misunderstanding your obligations can lead to avoidable penalties and administrative headaches later on. Once registered, you’ll be responsible for completing an annual Self Assessment tax return and paying the Income Tax and National Insurance contributions due on your profits.
As UK company formation and tax compliance specialists, we’ve helped thousands of new business owners get started on the right foot. This guide breaks down everything you need to know in clear, practical steps so you can feel confident about meeting your legal obligations from day one.
In this guide, you’ll learn:
- When and how to register as self-employed
- The key HMRC deadlines you must meet
- What information you’ll need to provide
- Common registration mistakes (and how to avoid them)
- How an accountant can simplify the entire process
By the end, you’ll understand exactly how to register as self-employed in the UK, the compliance obligations that follow, and the steps you can take to stay organised and stress-free throughout the tax year.
Top Tip: You don’t need to register the moment you begin earning. HMRC requires you to register by 5 October following the end of the tax year in which you became self-employed. Missing this deadline may result in penalties – so set a reminder early.
Helpful Resources
- Register for Self Assessment and Class 2 National Insurance – GOV.UK
- Tax and National Insurance for the Self-Employed
- Self Assessment Tax Returns
Expert Insight: Many new sole traders underestimate how quickly admin can build up – especially once income and expenses start flowing. Setting up proper bookkeeping early (even a simple system) makes your first Self Assessment far less stressful. If you’re unsure where to begin, working with a qualified accountant can help ensure you stay compliant and avoid costly mistakes.
Who Needs to Register as Self-Employed?
Not everyone earning money outside of traditional employment needs to register immediately, but if you meet HMRC’s criteria, you must complete self-employed registration. Registering ensures you comply with tax legislation and avoid penalties for undeclared income.
You need to register as self-employed if you:
- Work for yourself as a sole trader – including tradespeople, freelancers, creatives, consultants, and contractors.
- Run a business on your own – even part-time, such as an online shop, craft business, coaching service, or market stall.
- Earn income outside PAYE employment – for example, gig economy work, project-based income, or selling goods through platforms like eBay, Etsy, Amazon, Vinted, or Facebook Marketplace.
- Receive more than £1,000 in trading income (before expenses) in a tax year – this exceeds HMRC’s trading allowance, and anything above this amount must be declared via Self Assessment.
It’s also important to note that:
Even if you already have a full-time job and pay tax through PAYE, you must still register as self-employed for any additional income earned independently.
Examples
- Freelancer with a day job: A full-time web designer who also builds websites for private clients in the evenings must register as self-employed once their freelance income exceeds £1,000 in a tax year.
- Turning a hobby into a business: An eBay seller who consistently buys and sells items for profit and earns more than £1,000 – must register and report this income to HMRC.
Pro Tip: If your trading income is below £1,000, you may not need to register due to the trading allowance. However, registration can still be beneficial if you want to claim expenses, reduce tax on future earnings, or build up National Insurance contributions for your State Pension.
Helpful Resources
- Register if you’re self-employed – GOV.UK
- Trading Allowance Guidance – GOV.UK
- Self Assessment Tax Returns – GOV.UK
Expert Insight: One of the biggest misconceptions is that “small amounts don’t matter.” HMRC monitors online marketplaces and payment platforms, so declaring income correctly protects you from unexpected tax bills. If you’re unsure whether your activity counts as trading, reviewing HMRC’s ‘badges of trade’ tests or speaking to an accountant – can give clarity early on.
When Do You Need to Register?
HMRC requires you to register as self-employed by 5 October following the end of the tax year in which you started trading. Failing to meet this deadline can lead to unnecessary penalties and delays, so it’s crucial to plan ahead.
The UK tax year runs from 6 April to 5 April. Here’s how that works in practice:
- If you started trading in June 2025, this falls in the 2025/26 tax year (6 April 2025 – 5 April 2026).
- You must register as self-employed by 5 October 2026.
Registering on time is more than a formality – it ensures your Self Assessment account is ready when you need it and prevents compliance issues down the line. Missing the deadline may result in:
- Penalties for late registration
- Interest charges if your tax payments are delayed
- Delays in setting up your HMRC online account, which can make filing your first return far more stressful
Pro Tip: Don’t leave registration until the October deadline. HMRC must send an activation code (Unique Taxpayer Reference setup PIN) by post, and this can take up to 10 days or longer during busy periods. Registering early gives you more breathing room and reduces the risk of late filing penalties or account access problems.
Helpful Resource
Expert Insight: Many first-time sole traders underestimate the timeline involved in getting fully set up. If you start trading close to the end of the tax year (e.g., March), you’ll still need to register by the following 5 October. Registering early ensures your Self Assessment deadlines and National Insurance obligations all line up correctly and keeps your records clean should HMRC ever review your file.
How to Register as Self-Employed (Step-by-Step)
The process of completing your HMRC self-employment registration is straightforward, but it helps to understand each stage clearly. Below is the full step-by-step guide, including expert tips to make your registration smoother and stress-free.
1. Gather Your Information
Before you begin, make sure you have the following details to hand:
- Your National Insurance number
- The date you started trading (HMRC will ask for this)
- Your personal details – full name, address, date of birth
- Your business details – business name (if you use one), nature of your work, and business address
Top Tip: If you haven’t chosen a business name yet, don’t worry. You can trade under your own name and update HMRC later if you adopt a business or brand name.
2. Register Online with HMRC
To register, simply complete HMRC’s online form:
- Visit the official HMRC page: Register for Self Assessment and Class 2 National Insurance.
- Create or sign in to your Government Gateway account.
- Fill in the registration form to declare you are becoming self-employed.
- HMRC will set you up for both Self Assessment and Class 2 National Insurance contributions.
When your registration is processed, HMRC will issue you with a Unique Taxpayer Reference (UTR). This is a 10-digit number used for all future tax submissions.
Expert Insight: Keep your Government Gateway login and UTR safe. You’ll need both every year when filing your tax return and misplacing them can delay your submission.
3. Wait for Confirmation
HMRC will send your UTR by post within 10 working days (or up to 21 days if you’re overseas). You’ll also receive instructions on how to:
- Activate your HMRC online services
- Access your Self Assessment account
- Start managing your tax obligations digitally
If the letter doesn’t arrive, you can request a replacement through your HMRC account – just allow extra time during busy periods.
4. Submit Your First Tax Return
Once registered, you must file an annual Self Assessment tax return reporting your income, expenses, and profits. Key deadlines include:
- 31 January – Online tax return deadline
- 31 January – Deadline to pay any tax due for the previous tax year
- 31 July – Second instalment for payments on account (if applicable)
Your first return will cover the period from when you started trading up to 5 April of that tax year. Accurate record-keeping throughout the year makes this process much easier – so it’s wise to set up bookkeeping procedures early.
Pro Tip: Brand-new sole traders often underestimate how long it takes to complete their first tax return. Starting early, organising receipts digitally, and using accounting software (or working with an accountant) can significantly reduce the last-minute pressure in January.
Helpful Resource
Registering as a Sole Trader
Most people who register as self-employed choose to operate as a sole trader. It’s the simplest and most flexible structure for freelancers, contractors, gig-economy workers, and small business owners.
As a sole trader, you:
- Keep all profits after tax – you retain full control and benefit directly from your earnings.
- File a Self Assessment tax return every year, reporting your income and expenses.
- Pay Income Tax and National Insurance based on your business profits.
You can trade under your own name or create a business name – just ensure it isn’t already in use and doesn’t infringe trademarks. Unlike limited companies, there’s no formal Companies House registration required for sole traders.
Expert Insight: While sole trader status is simple and low-cost, your personal liability is unlimited. This means you are personally responsible for any business debts. If your business grows or you want added legal protection, consider switching to a limited company in future.
HMRC Self-Employment Registration: Key Things to Know
Once you’re registered with HMRC as self-employed, there are several important obligations and thresholds to understand:
- Class 2 & Class 4 NICs: Sole traders pay National Insurance contributions based on their profits. Class 2 NICs usually apply above a small earnings threshold, while Class 4 NICs apply on higher profits. These contribute toward your State Pension and certain benefits.
- Business records: You must keep clear, accurate records of all income, expenses, invoices, receipts, mileage, and bank transactions. Good bookkeeping makes Self Assessment easier and reduces the risk of HMRC enquiries. Digital tools or apps can help streamline this from day one.
- VAT registration: If your rolling 12-month turnover exceeds £90,000 (2025 threshold), you must register for VAT. You can also register voluntarily earlier if it benefits your business, for example, if you incur significant VAT-able expenses.
Top Tip: Even if you’re nowhere near the VAT threshold, tracking your turnover monthly helps avoid accidental non-compliance. HMRC can issue penalties for late VAT registration, so staying proactive is essential.
Helpful Resources
