How to register as self-employed in the UK: step-by-step for 2026/27

Becoming self-employed in the UK is easy to start and easy to get slightly wrong. There is no application to be approved: you simply begin trading and tell HMRC. But the deadlines, the Unique Taxpayer Reference, National Insurance and the records you need are all things you will wish you had understood in week one rather than month eleven. This guide takes you through the registration process step by step and covers what to do afterwards.

Do you actually need to register?

You generally must register as self-employed if you earn more than £1,000 in a tax year from self-employment before expenses. That is the trading allowance. Below it, you do not need to register or report that income. You should also register if you are in a partnership, or if you want to claim certain benefits that depend on self-employed status, or if you want to make National Insurance contributions voluntarily. If you are unsure whether what you do counts as trading, HMRC looks at badges of trade such as profit motive, repeated activity, and how organised the activity is. Our guide to the trading allowance explains the threshold.

A tax year runs from 6 April to 5 April. If you began trading on 20 August 2026, that is in the 2026/27 tax year.

The deadline: 5 October

You must register for Self Assessment by 5 October after the end of the tax year in which you started. For someone starting in August 2026 (tax year 2026/27), the deadline is 5 October 2027. Registering earlier is better. It gives you time to receive your UTR and activate your online account before the first return is due on 31 January 2028. Missing the registration deadline can lead to penalties if you owe tax.

Step by step

1. Gather your details

You will need your name, address, National Insurance number, date of birth, the date you started trading, your business name if you use one, and a description of the business. You can use your own name or a trading name. A trading name must not be offensive or imply a limited company, and you do not need to register it.

2. Register with HMRC online

Go to GOV.UK and search "register for Self Assessment". Choose to register as a sole trader. If you have never used Self Assessment, you will be asked to create a Government Gateway account. If you have used it before, for instance as a landlord, you can add self-employment to your existing record.

3. Wait for your UTR

HMRC posts a 10-digit Unique Taxpayer Reference to your address, normally within 10 working days, and longer if you are abroad. It is your personal tax identifier for Self Assessment.

4. Activate your online account

A separate activation code follows by post, usually a few days after the UTR. Enter it into your Government Gateway account to get access to your tax account. Without activating, you cannot file online, so do not leave it to January.

5. Check your National Insurance position

Self-employed people pay Class 4 National Insurance on profits above £12,570, at 6% up to £50,270 and 2% above, through the Self Assessment return. Class 2 is no longer a compulsory charge for most people. If your profits are above the small profits threshold, a Class 2 credit is treated as paid, which protects your State Pension record. If profits are lower, you can choose to pay voluntarily. See Class 2 and Class 4 National Insurance. Check your NI record at GOV.UK.

6. Decide about VAT

You must register for VAT when your taxable turnover passes £90,000 in a rolling 12 months. You can also register voluntarily earlier. Read voluntary VAT registration: pros and cons before deciding.

7. Open a business bank account

It is not a legal requirement for sole traders but it makes everything easier. See separate business bank account for sole traders.

8. Get insurance and permissions

Depending on your trade, you may need public liability insurance, professional indemnity, a licence, DBS checks or registration with a trade body. Check local council rules for food, taxis and some other trades. If you handle personal data, you may need to pay the ICO data protection fee.

Setting up your records on day one

HMRC does not ask for records at registration, but it expects them at tax time. Decide now how you will:

• Record every sale and keep copies of invoices.
• Keep receipts for expenses, digitally if possible. See how to keep receipts for HMRC.
• Record mileage and business-use proportions.
• Track money you put in and take out.

Choose accounting software early. If your income is above the Making Tax Digital thresholds, you will need compatible software to send quarterly updates. See who must join MTD ITSA and when. The bookkeeping guide for sole traders covers the setup in depth.

What the first year looks like

• Throughout the year: record income and expenses. Set aside tax from every payment.
• 5 April: the tax year ends.
• 6 April onwards: gather figures for the return.
• 31 October: deadline for paper returns (rarely used).
• 31 January: deadline for filing online and paying the tax due, plus the first payment on account if applicable. See payments on account explained.
• 31 July: the second payment on account.

Your first tax bill can be a shock, because it may include a full year's tax plus a payment on account for the next year. Plan for it. Read first-year self-employed tax bill.

Worked example

Sam starts as a freelance photographer on 1 September 2026. Between September and April, she invoices £21,000 and has £3,500 of allowable costs, so her profit for 2026/27 is £17,500. Class 4 NIC is 6% of (£17,500 − £12,570) = £295.80. Income tax is 20% of (£17,500 − £12,570) = £986.00, assuming no other income and the personal allowance of £12,570. Total tax and NIC: £1,281.80. Because that is above £1,000, she will also be asked for payments on account towards 2027/28 of £640.90 each on 31 January and 31 July 2028. So on 31 January 2028 she pays £1,281.80 + £640.90 = £1,922.70. Using our sole trader tax calculator at the start would have avoided the shock.

Sole trader or limited company?

Registering as self-employed makes you a sole trader, the simplest structure. You and the business are the same legal person, so you are personally responsible for debts, and all profit is taxed as your income whether you take it out or not. A limited company is separate from you, has its own filing duties and offers different tax planning, but also more admin. Many people start as sole traders and incorporate once profits justify the extra cost. It is not a decision you must make on day one, but run the numbers with our director salary and dividend calculator when profit passes roughly £40,000 to £50,000, and read limited company versus sole trader bookkeeping.

Telling others you have started

Besides HMRC, tell any relevant parties. If you claim Universal Credit or other benefits, report the change in your circumstances. If you have a mortgage or insurance policy that mentions your employment, tell the provider. If you work from home, check your lease or mortgage terms and, if relevant, your home insurance. And if you use your own vehicle for business, tell your insurer, because standard social and commuting cover does not usually include business use.

Common mistakes

1. Registering late and receiving a penalty.
2. Losing the activation code letter.
3. Not saving for tax.
4. Mixing personal and business transactions.
5. Claiming the trading allowance and expenses together. You must choose one.
6. Forgetting to record the business start date.
7. Not telling HMRC if circumstances change.

Getting support

If you want a bookkeeper in place from day one, our sole trader bookkeeping service works at a flat £15 an hour with no contract. See the instant quote for your price.

Frequently asked questions

Can I register as self-employed if I also have a job?

Yes. You will report both on the same Self Assessment return. Your employer's PAYE covers the salary, and the self-employed profit is taxed on top.

How long does it take to get my UTR?

Usually up to 10 working days by post, and up to 21 days if you are abroad.

Do I need a business name?

No. You can trade under your own name. A business name is optional but must not mislead or copy an existing company name.

What happens if I miss the 5 October deadline?

You can still register and file, but penalties may apply if you owe tax and file late. Register as soon as you realise.

Can you help me register and set up?

Yes. Ask for a free health check and we will take you through it.