To register as self employed in the UK, you normally need to sign up for Self Assessment with HMRC if your gross trading income exceeds £1,000 in a tax year.
The online process requires details such as your National Insurance number, business activity and the date you started trading.
HMRC’s improved registration service, introduced in September 2026, can provide eligible new users with their Unique Taxpayer Reference in their online account within 72 hours.
- Registration Deadline: For 2025/26 income, you should normally tell HMRC by 5 October 2026.
- Tax Return Deadline: Online Self Assessment returns for 2025/26 are normally due by 31 January 2027.
- Business Records: Keep evidence of income, allowable expenses, invoices and receipts from the start of trading.
- National Insurance: Mandatory Class 2 payments no longer apply in the old way, while Class 4 may apply depending on your profits.
- Making Tax Digital: Higher-earning sole traders may also need to follow MTD for Income Tax requirements from 2026 onwards.
Last Updated: 19.09.2026
Do You Need to Register as Self-Employed?
Being self-employed generally means you work for yourself rather than working only as an employee. A sole trader is one of the simplest ways of running a business in the UK.
You can also be employed and self-employed at the same time. For example, someone could have a PAYE office job during the week while earning additional income from freelance design, consultancy, online selling or another business.
HMRC states that you normally need to register as a sole trader for Self Assessment if you earn more than £1,000 in a tax year from self-employment.
You may also need to register in certain circumstances even when your income is lower, such as when you want to make voluntary Class 2 National Insurance contributions or need to prove that you are self-employed.
The £1,000 Trading Allowance
The trading allowance can provide up to £1,000 of tax-free gross trading income per tax year.
Gross income means the amount received before deducting expenses.
| Gross Trading Income | Usual Position |
| £700 | Registration may not normally be required |
| £1,000 | Usually covered by the trading allowance |
| £1,001 | Normally requires Self Assessment registration |
| £10,000 | Normally requires Self Assessment registration |
There are exceptions, so earning £1,000 or less does not automatically mean registration is never useful or necessary.
HMRC allows some people below the threshold to register voluntarily, including those who want to protect entitlement to certain benefits through voluntary National Insurance contributions.
Can You Be Employed and Self-Employed at the Same Time?
Yes. Having a PAYE job does not prevent you from running a separate business.
Your employer will usually deduct Income Tax and Class 1 National Insurance from your salary. Income and profits from your separate self-employed activity are then dealt with through Self Assessment where required.
Keeping your employment income and business records clearly organised makes completing the return easier.
What You Need Before Registering as Self-Employed?
Preparing your information before starting the HMRC registration process can prevent unnecessary delays.
You may need:
- National Insurance Number
- Full Name And Contact Details
- Home Address
- Date You Started Self-Employment
- Description Of Your Business Activity
- HMRC Online Account Details
- Previous Self Assessment Details If Applicable
A National Insurance number is required when registering for Self Assessment as a sole trader.
The date you started trading is particularly important. Keep evidence such as invoices, receipts, contracts and bank transactions that can help establish when your business activity began.
How to Register as Self-Employed With HMRC?
Registration is generally completed online through HMRC. Registering as a sole trader means registering for Self Assessment so HMRC can deal with your business income and tax obligations.
Step 1: Check Your Employment Status
First establish whether you are genuinely working for yourself.
Typical signs of self-employment include deciding how and when you work, dealing directly with customers, taking responsibility for business costs and being responsible for whether the business makes a profit or loss.
Employment status depends on the actual working arrangement, not simply what a contract calls you.
Step 2: Create or Access Your HMRC Online Account
HMRC’s updated registration service can be accessed through a Personal Tax Account.
Users may be able to access their account using Government Gateway or GOV.UK One Login details, depending on their circumstances.
Keep your login details secure because you will need your HMRC account for future tax administration.
Step 3: Enter Your Personal and Business Details
Complete the registration using accurate information about yourself and your business.
You may be asked about:
- Your Personal Details
- Your National Insurance Number
- Your Business Activity
- When You Started Trading
- Your Contact Information
Use a clear description of your work. For example, “graphic designer”, “business consultant” or “electrician” is usually clearer than a vague description such as “services”.
Step 4: Confirm When You Started Trading
Enter the correct date your self-employed activity began.
Starting to prepare for a business is not always the same as starting to trade. Your trading date will normally relate to when you actually began carrying on the business, such as providing services or making sales.
Keep records supporting the date in case you need them later.
Step 5: Submit Your Registration and Get Your UTR
After checking your information, submit the registration.
HMRC will issue a Unique Taxpayer Reference, usually called a UTR. This identifies your Self Assessment tax record and should be kept securely.
Under HMRC’s improved registration service launched in September 2026, new Self Assessment customers using the service can receive their UTR in their online account within 72 hours, rather than waiting for it to arrive by post.
HMRC Self-Employment Registration Changes in 2026
HMRC introduced an improved Self Assessment registration service on 9 September 2026.
The updated system includes:
- Pre-Populated Customer Information
- Save And Return Functionality
- Online Support During Registration
- Email Or Text Confirmation
- Online UTR Delivery
The changes are particularly useful for first-time filers because the process can now be completed more quickly through a Personal Tax Account.
People who were previously registered for Self Assessment but did not submit a return for 2024/25 may need to reactivate their account rather than treating themselves as completely new customers.
What Is the Deadline to Register as Self-Employed?
For someone who needs to submit a Self Assessment return for the 2025/26 tax year, covering 6 April 2025 to 5 April 2026, the normal notification deadline is 5 October 2026.
The key dates are:
| Action | Deadline For 2025/26 |
| Tax Year Ends | 5 April 2026 |
| Tell HMRC You Need Self Assessment | 5 October 2026 |
| Paper Tax Return | 31 October 2026 |
| Online Tax Return | 31 January 2027 |
| Pay Self Assessment Tax | 31 January 2027 |
The 31 January 2027 deadline applies to online filing and payment of tax due for 2025/26.
What Happens If You Register Late?
Registering after the 5 October deadline can potentially result in a penalty.
If HMRC issues a return after the normal registration deadline, you may be given a different filing deadline, typically three months from the date shown on HMRC’s letter or email. However, tax owed for 2025/26 is still generally due by 31 January 2027.
Register as soon as you realise you need to rather than waiting until the tax-return deadline.
National Insurance for Self-Employed People in 2026/27
The National Insurance rules for self-employed people have changed significantly from the older system where Class 2 contributions were routinely charged.
For the 2026/27 tax year:
- Profits Below £7,105: Class 2 does not have to be paid, although eligible people can choose to pay voluntary Class 2 contributions
- Profits Of £7,105 Or More: Class 2 is treated as paid, protecting the National Insurance record without an actual Class 2 payment
- Profits Above £12,570: Class 4 National Insurance normally becomes payable
- £12,570 To £50,270: Class 4 is charged at 6%
- Above £50,270: Class 4 is charged at 2%
Voluntary Class 2 contributions are £3.65 per week in 2026/27.
This means new sole traders should not assume they automatically need to make mandatory Class 2 payments simply because they have registered as self-employed.
What Happens After You Register as Self-Employed?
Registration is only the beginning of your tax responsibilities.
Keep Business Records
Keep accurate records of:
- Sales And Other Business Income
- Invoices
- Receipts
- Allowable Business Expenses
- Bank Transactions
- Relevant Contracts And Documents
HMRC requires self-employed people to keep relevant business records for at least five years after the 31 January submission deadline for the relevant tax year.
Keeping business and personal transactions separate can also make record keeping easier.
File and Pay Self Assessment
You will normally need to report your self-employed income and allowable expenses through Self Assessment.
For the 2025/26 tax year, the standard online filing and payment deadline is 31 January 2027.
Some taxpayers may also have to make payments on account towards their next tax bill, including a second payment later in the year.
Setting aside part of your business income for tax throughout the year can reduce the risk of facing an unexpected bill.
Making Tax Digital for Self Employed People
Making Tax Digital for Income Tax is now being introduced in stages for sole traders and landlords.
The current timetable is:
| Qualifying Income | MTD Start Date |
| More Than £50,000 | 6 April 2026 |
| More Than £30,000 | 6 April 2027 |
| More Than £20,000 | 6 April 2028 |
Qualifying income generally includes gross income from self-employment and property before expenses.
People within Making Tax Digital must use compatible software to maintain digital records and provide the required information to HMRC.
From September 2026, HMRC also began signing up people who should be using Making Tax Digital for 2026/27 but had not registered themselves, based on information showing qualifying income above £50,000 for 2024/25.
New sole traders should therefore consider MTD requirements when choosing bookkeeping software, even if their current income is below the first threshold.
Do Self-Employed People Need to Register for VAT?
Registering as self-employed does not automatically make you VAT-registered.
The compulsory VAT registration threshold is currently £90,000 of taxable turnover.
You normally need to register if:
- Your Taxable Turnover For The Previous 12 Months Exceeds £90,000
- You Expect Taxable Turnover To Exceed £90,000 Within The Next 30 Days
Businesses below the threshold can sometimes register voluntarily.
Remember that VAT turnover and taxable profit are different measures. The VAT threshold is based on taxable turnover rather than the amount left after deducting business expenses.
Conclusion
Understanding how to register as self employed is relatively straightforward once you know whether registration is required and have the necessary information ready.
Most sole traders with gross trading income above £1,000 need to register for Self Assessment. For people declaring income for 2025/26, the key registration date is 5 October 2026, followed by the online Self Assessment filing and payment deadline of 31 January 2027.
HMRC’s improved 2026 registration service has also made the process faster for many new taxpayers, including UTR delivery through the online account within 72 hours for users of the new service.
Once registered, keep accurate records, understand your National Insurance position, plan for your tax bill and check whether Making Tax Digital or VAT rules apply as your business grows.
FAQs
Do I Need to Register If I Earn Less Than £1,000?
Usually, gross trading income of £1,000 or less can fall within the trading allowance, meaning you may not need to declare it. Exceptions apply, including where you choose to register for certain National Insurance or benefit purposes.
How Long Does It Take to Get a UTR?
People using HMRC’s improved online Self Assessment registration service can receive their UTR in their online account within 72 hours. Other cases may take longer.
Do I Need to Register Again If I Already Have a UTR?
It depends on why you previously registered. If your Self Assessment account became inactive, you may need to reactivate it. Someone already registered for another reason may also need to tell HMRC that they have become a sole trader.
Can I Register Before I Start Trading?
You can prepare your HMRC account and business records in advance. GOV.UK confirms that a sole trader can start trading before registering and can choose to register earlier than the normal deadline once the business has begun.
What Happens If I Miss the 5 October Deadline?
HMRC says late notification could result in a penalty. Register as soon as possible once you realise you should have done so rather than waiting for the next filing deadline.
Can I Be Employed and Self-Employed?
Yes. You can work for an employer through PAYE while also running a separate sole-trader business. Your employment taxes and self-employed income are dealt with differently.
How Do I Tell HMRC If I Stop Being Self-Employed?
You should tell HMRC when you stop trading and complete any outstanding Self Assessment obligations. A final return may still be needed to report income and expenses up to the date the business stopped.
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