UK tax and accounts basics, explained
How to Register as Self-Employed in the UK
8 November 2026
General information, not tax adviceEvery figure here is quoted from GOV.UK, with the tax year it applies to. Your own position can differ, so check your HMRC online account and the linked GOV.UK page, or speak to a qualified accountant.
If you've started working for yourself, you may need to register as self-employed with HMRC. In the UK, most people do this by registering for Self Assessment as a sole trader. This guide explains when GOV.UK says you have to register, how it works and what comes next. It's general information, not tax advice.
Quick answer: GOV.UK says you register as a sole trader by registering for Self Assessment. You must register if you earn more than £1,000 in a tax year (6 April to 5 April). For the 2025 to 2026 tax year, the date to tell HMRC was 5 October 2026, and you'll need a National Insurance number to register.
Key Takeaways
A sole trader works for themselves, is classed as self-employed and makes all the business decisions.
You can start trading straight away, but you must register for Self Assessment if you earn more than £1,000 in a tax year.
You need a National Insurance number to register.
Sole traders have unlimited liability, so they're personally responsible for all the business's debts.
You must keep records of your income and expenses from the day you start trading.
What a sole trader is
GOV.UK's guide to what a sole trader is describes it as the simplest business structure to set up and keep records for. As a sole trader you:
work for yourself
are classed as self-employed
make all the business decisions
You can be a sole trader as your only job, or be employed and self-employed at the same time. GOV.UK says most people set up as a sole trader when first starting out.
GOV.UK also points out that sole traders have unlimited liability. That means you're personally responsible for all of the debts of the business. You keep all the profits after paying tax.
When you have to register
GOV.UK says you can start trading straight away without registering. Its page on registering as a sole trader says you must register if you:
earn more than £1,000 in a tax year (from 6 April to 5 April)
need to prove you're self-employed, for example to claim Tax-Free Childcare
want to make voluntary Class 2 National Insurance payments to help you qualify for benefits and State Pension
need to register as a subcontractor for the Construction Industry Scheme (CIS) or as a share fisher
You can choose to register earlier if you want to. If you've already registered for Self Assessment for another reason, GOV.UK says you'll need to register again as a sole trader, so that you're registered for Class 2 National Insurance contributions.
The £1,000 trading allowance
The £1,000 figure comes from the trading allowance. GOV.UK's page on tax-free allowances on property and trading income describes it as a tax exemption of up to £1,000 a year for individuals with trading income from self-employment, casual services such as babysitting or gardening, or hiring out personal equipment such as power tools.
If your gross trading income is £1,000 or less, GOV.UK says you may not need to tell HMRC, though there are cases where you must still register. You must keep a record of the income either way. The allowance doesn't apply to trading income from a partnership.
The registration deadline
GOV.UK says you must tell HMRC by 5 October if you need to complete a tax return for the previous tax year and you haven't sent one before. For the 2025 to 2026 tax year, which ended on 5 April 2026, that date was 5 October 2026. If you register late or don't register when you need to, you may get a penalty.
After you've registered, you'll need to send Self Assessment tax returns. Our guide to Self Assessment tax return deadlines sets out the dates for each return.
What you need before you start
GOV.UK says you'll need a National Insurance number to register for Self Assessment, and you can apply for one if you don't have one. Registration is done through GOV.UK, and how you register depends on your circumstances. If you've registered before but didn't send a return last year, you may need to reactivate your Self Assessment account instead.
Choosing a business name
You can trade under your own name or choose another one. GOV.UK's page on choosing your business name says sole trader names 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 include your name and your business name, if you have one, on official paperwork such as invoices and letters.
Keeping records
GOV.UK says that when you start trading you must keep records, which help you work out your profit or loss for your tax return. Its page on what records to keep lists all sales and income, all business expenses, VAT records if you're registered for VAT, PAYE records if you employ people, and records about your personal income.
Once you're registered, you can deduct allowable expenses to work out your taxable profit. Our guide to allowable expenses for the self-employed covers what GOV.UK says counts.
Taxes to watch as you grow
When you send your return, GOV.UK says HMRC will work out whether you need to pay Income Tax and National Insurance contributions based on your profits. You also need to register for VAT if you meet the requirements. Our guide to the VAT registration threshold explains when that applies.
For the main tax dates and thresholds in one place, see our page of key tax dates and thresholds.
Frequently asked questions
Do I need to register as self-employed if I earn less than £1,000?
Not always. GOV.UK says you must register as a sole trader if you earn more than £1,000 in a tax year. You may still need to register for other reasons, for example to prove you're self-employed or to pay voluntary Class 2 National Insurance.
Can I be employed and self-employed at the same time?
Yes. GOV.UK says you can be a sole trader as your only job, or be employed and self-employed at the same time.
What do I need to register as a sole trader?
GOV.UK says you'll need a National Insurance number to register for Self Assessment. You can apply for one if you don't have one.
When do I have to tell HMRC I'm self-employed?
GOV.UK says you must tell HMRC by 5 October if you need to complete a tax return for the previous tax year. For the 2025 to 2026 tax year, that was 5 October 2026.