When do I need to register as self-employed?

By 5 October following the end of the tax year you started earning self-employed income, once that income goes over the £1,000 trading allowance. Registering late risks penalties, so don't leave it.

What is the £1,000 trading allowance?

It's a tax-free allowance for self-employment income. If you earn less than £1,000 from self-employment in a tax year, you generally don't need to register or declare it. Over £1,000 and you do.

Your Unique Taxpayer Reference — a 10-digit number HMRC gives you when you register for Self Assessment. You'll use it on your tax return every year, so keep it safe.

Is being a sole trader the same as self-employed?

Effectively, yes, for most people starting out. Registering as self-employed means you're trading as a sole trader — an individual running their own business, as opposed to through a limited company.

How to register as self-employed

Starting to earn money working for yourself? At some point you need to tell HMRC. Registering as self-employed is more straightforward than most people expect, but there's a deadline that trips people up and a bit of jargon worth cutting through first.

Do you need to register?

If you're running your own business as an individual — freelancing, contracting, selling, offering a service — you're a sole trader, and you generally need to register for Self Assessment once your self-employed income goes over £1,000 in a tax year. That £1,000 is the "trading allowance": earn less than that from self-employment and you usually don't need to register or declare it. Go over it and you do.

When to register — the deadline that catches people out

You need to register by 5 October following the end of the tax year in which you started. So if you started earning self-employed income during the 2026/27 tax year (which runs 6 April 2026 to 5 April 2027), you'd need to register by 5 October 2027. Leaving it late risks penalties and, because your reference number can take time to arrive, a last-minute scramble before your first return is due.

How to register

You register through the gov.uk website. You'll set up a Government Gateway account if you don't have one, and give HMRC some basic details about you and your business. In return you'll get your Unique Taxpayer Reference (UTR) — a 10-digit number you'll use for Self Assessment from then on. Keep it safe; you'll need it every year.

What happens next

Once registered, you're in the Self Assessment system. Each year you'll complete a tax return declaring your income and allowable expenses, and pay Income Tax and Class 4 National Insurance on your profit. Our self-employed tax calculator gives you a rough idea of what that bill might look like, and our complete guide to Self Assessment walks through the deadlines.

Sole trader or limited company?

Registering as self-employed makes you a sole trader, which is the simplest way to start. As you grow, a limited company can become more tax-efficient and offers limited liability — but it also brings more admin. There's no rush to decide; plenty of successful businesses run happily as sole traders for years.

Want it done right from day one?

Getting set up properly at the start saves a lot of untangling later. We help new sole traders register, get organised and understand what they'll owe — so the first tax return is a formality, not a fright. If you're just starting out, get in touch and we'll point you the right way.