If you’ve started working for yourself — whether as a freelancer, a tradesperson, or running any kind of small business — you need to let HMRC know. Registering as self-employed is straightforward, but it’s important to do it promptly to avoid penalties.
When Do You Need to Register?
You must register as self-employed with HMRC by 5 October following the end of the tax year in which you started trading. So if you began self-employment any time between 6 April 2024 and 5 April 2025, you needed to register by 5 October 2025.
Don’t wait until you’re earning a significant amount — if you’re trading at all, even on a small scale, you need to register. HMRC considers you self-employed if you’re running a business to make a profit, even if that profit is modest.
What Is a UTR Number?
When you register, HMRC will issue you a Unique Taxpayer Reference (UTR) — a 10-digit number that identifies you for tax purposes. You’ll need this number for all correspondence with HMRC and for filing your Self Assessment tax return. Keep it safe — you’ll use it every year.
How to Register: Step by Step
- Go to HMRC’s online registration service at gov.uk/register-for-self-assessment
- Create a Government Gateway account if you don’t already have one — you’ll need a valid email address
- Select the option for self-employment (as a sole trader, rather than a limited company or partnership)
- Provide your personal details — name, National Insurance number, date of birth, and address
- Provide details about your business — the nature of your work and the date you started trading
- Submit the registration — HMRC will send your UTR in the post within 10 working days
You’ll also receive an activation code for your online Self Assessment account, which you’ll use to file your returns and manage your tax affairs.
What Happens After You Register?
Once registered, you’ll need to file a Self Assessment tax return every year, covering your income and expenses for each tax year (6 April to 5 April). Your first return will cover the period from when you started trading to the end of the tax year.
You’ll also need to start keeping records of all your income and expenses from the day you begin trading — not just from when you register. HMRC can ask to see these records, so good habits from day one make a big difference. Our guide to what records to keep as a sole trader is a good starting point.
What About National Insurance?
When you register as self-employed, HMRC automatically sets you up for Class 2 and Class 4 National Insurance contributions, which are paid through your annual Self Assessment return. You don’t need to register for these separately.
What About VAT?
Registering as self-employed does not automatically register you for VAT. VAT registration is separate and only required if your taxable turnover exceeds the VAT threshold (currently £90,000 per year). Our guide to whether you need to register for VAT explains this in more detail.
What If You Registered Late?
If you’ve missed the registration deadline, register as soon as possible. HMRC may issue a penalty for late registration, but registering promptly and paying any tax owed will reduce the risk of further action. Don’t put it off — the longer you wait, the more complex it becomes.
Need Help Getting Started?
PBAS helps new sole traders get set up correctly from the beginning — from registration through to bookkeeping and Self Assessment. If you’re just starting out and want to make sure you’re doing everything right, get in touch.
Need Help with This?
PBAS provides affordable bookkeeping and accountancy services for sole traders and small businesses across East Lothian, Edinburgh, Midlothian and throughout Scotland. If you’d like a hand with your accounts, self assessment or any tax matter, get in touch for a free, no-obligation chat.
This article provides general guidance only. For specific advice on your circumstances, consult HMRC directly via the GOV.UK register for Self Assessment or speak to a qualified bookkeeper.
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