Thinking of working for yourself? Whether you’re freelancing, selling online, or side hustling after hours, one thing is clear — you’ll need to register as self-employed with HMRC.
More and more people in the UK are choosing the freedom of self-employment. But before you can enjoy flexible hours and be your own boss, there’s a legal step you can’t skip: telling HMRC you’re self-employed.
In this guide, we’ll break down:
Who needs to register
Exactly how and when to do it
What documents you need
And the tax responsibilities that come with it
Let’s walk through the full process — simply, clearly, and without jargon — so you can register with confidence and avoid any costly HMRC mistakes.
What Does It Mean to Be Self-Employed in the UK?
If you work for yourself, set your own hours, and take responsibility for finding your own clients or customers — chances are, you’re self-employed.
In the UK, being self-employed means you’re not working under an employment contract and no one deducts tax or National Insurance from your pay automatically. Instead, you’re responsible for managing your own taxes, registering with HMRC, and filing a Self Assessment each year.
Self-employment covers a wide range of people. You might be freelancing full-time, running an online business from home, doing occasional contract work, or simply earning a bit of income on the side. If you’re making money independently — without being on someone else’s payroll — HMRC may see you as self-employed, even if it’s just part-time.
This applies to:
- Freelancers like designers, writers, or consultants
- Online sellers, tutors, or trades people
- Gig workers or drivers for platforms like Uber or Deliveroo
- Anyone offering services or products directly to clients
Even if you don’t consider yourself a “business,” you still need to follow the rules. And that usually starts with one key step: registering as self-employed.
Who Needs to Register as Self-Employed?
If you’re earning money on your own terms, even just a little — it’s time to ask: do I need to tell HMRC?
Many people delay registering because they’re unsure if their work “counts” as a business. But HMRC takes a broad view of self-employment. If you’re providing goods or services, getting paid for it, and not on a company payroll, you’re probably classed as self-employed — and need to register.
This applies whether you’re freelancing, contracting, running a small side hustle, or selling online. Even if you don’t feel like a “business owner,” earning from your own work usually means you’re responsible for your own taxes.
The one key exception is the trading allowance. If your total self-employed income is £1,000 or less in a tax year, you don’t have to register. But once you go above that threshold — or expect to — registration is required.
You also need to register if:
- You want to claim tax-deductible business expenses
- You’ve already registered before but started trading again
- You’re working part-time alongside a PAYE job and earning extra income
Waiting too long can lead to penalties, so it’s safer to register early and stay compliant — even if you’re just getting started.
When Do You Need to Register as Self-Employed?
There’s one deadline every new self-employed person in the UK should know: 5th October. Miss it, and HMRC could fine you.
The timing can be confusing, especially if you start earning money midway through the tax year. But the rule is simple: once you start trading — that is, once you begin providing goods or services with the aim of making a profit — the clock starts ticking.
You must register as self-employed by 5th October following the end of the tax year in which you began working for yourself. In the UK, the tax year runs from 6 April to 5 April the following year. So, if you started your business in July 2025, you need to register by 5 October 2026.
Even if your earnings are small at first, it’s better to register early than leave it too late. HMRC doesn’t always send reminders — but they will send penalties if you’re late.
Some people make the mistake of waiting until they land a “big” job or start making regular income. But in HMRC’s eyes, even a one-off freelance gig or your first Etsy sale can trigger the need to register.
What Happens If You Miss the Registration Deadline?
If you register late, HMRC may charge you a penalty — even if you didn’t owe any tax. The fine can start small but increase over time, especially if your tax return is late or incomplete.
To avoid this, it’s a good idea to register as soon as you’re confident you’ll earn over £1,000 in self-employed income — or want to claim business expenses, no matter your earnings.
How to Register as Self-Employed with HMRC (Step-by-Step)
Registering as self-employed in the UK isn’t complicated — but getting it right the first time can save you time, stress, and future tax penalties.
The process is entirely free and can be done online in less than 30 minutes. Once you’re registered, HMRC will know that you’re working for yourself and will expect you to file a Self Assessment tax return each year.
Here’s how to do it:
First, you’ll need to set up a Government Gateway account — this is your personal login for HMRC’s online services. If you already have one (for example, from previous PAYE jobs or benefits), you can use it. If not, you’ll be guided through creating one during the registration.
Next, you’ll go through HMRC’s online registration for Self Assessment. During this process, you’ll be asked for basic information:
- Your full name, date of birth, and National Insurance number
- Your home address and contact details
- The nature of your self-employed work
- The date you started trading
Once submitted, HMRC will send you a Unique Taxpayer Reference (UTR) by post, usually within 10 working days. This number is essential — you’ll use it every time you file your taxes.
You’ll also receive an activation code to complete your access to the Self Assessment portal. Once activated, you’re officially registered and can manage your taxes online.
Can I Register as Self-Employed Online?
Yes — and it’s the most efficient way to do it. You can register via HMRC’s official site using their dedicated Self Assessment registration portal. Avoid third-party websites that charge for this service — registration is always free.
If you prefer, you can also register by phone or post, but it takes longer and is less convenient. Most people now use the digital route.
What Information Do You Need to Register?
Before you start the registration process, make sure you’ve got the right details at hand — it’ll save you time and prevent mistakes.
HMRC asks for a few key pieces of information when you register as self-employed. These are used to create your tax profile and issue your Unique Taxpayer Reference (UTR). While it’s a fairly quick form, entering the wrong details could delay your registration or cause issues when filing your tax return later on.
Here’s what you’ll need:
You’ll be asked to provide your full legal name, current home address, and National Insurance number — this is how HMRC identifies you. If you’ve recently moved or changed your name, it’s a good idea to check your personal records with HMRC before you begin.
Next, you’ll be asked about the nature of your work. This doesn’t have to be overly specific — just a general description such as “freelance web designer,” “online retailer,” or “contract electrician” will do. HMRC uses this information to place your work in a business category for tax purposes.
You’ll also need to confirm your start date — the day you began trading or earned your first income from self-employment. If you’re unsure of the exact day, give your best estimate based on your first invoice, payment received, or job completed.
Lastly, make sure your email and phone number are up to date. HMRC will use these to send your activation code and updates about your Self Assessment account.
summary:
Question: What do I need to register as self-employed in the UK?
Answer: You need your name, address, NI number, contact details, your business type, and the date you started working for yourself.
Sole Trader vs. Self-Employed – What’s the Difference?
If you’ve heard the terms ‘sole trader’ and ‘self-employed’ used interchangeably, you’re not alone — but is there actually a difference?
In simple terms: every sole trader is self-employed, but not all self-employed people are sole traders. It’s a subtle distinction, but it helps to understand it when registering with HMRC or planning your business structure.
When you register as self-employed, HMRC will ask you what type of self-employed worker you are. Most individuals working for themselves — such as freelancers, small business owners, or independent contractors — will register as sole traders. This is the most common and straightforward legal structure.
As a sole trader:
- You run your business as an individual
- You keep all profits (after tax)
- You’re personally responsible for any debts or liabilities
- You file your income through Self Assessment
However, the broader term “self-employed” can also include people who operate under different structures, like partnerships or limited companies, even though they don’t have a traditional employer. But these options involve more admin, different tax rules, and often aren’t necessary unless you’re earning at a higher level or want to scale your business.
So if you’re just starting out and working alone, you’re likely a sole trader — and registering as self-employed is your first step.
Quick answer
Question: Is a sole trader the same as self-employed?
Answer: Yes, most sole traders are self-employed, but “self-employed” can also refer to other structures like partnerships or directors of limited companies.
What Taxes Do Self-Employed People Pay in the UK?
When you’re self-employed, understanding your tax obligations is crucial — it’s not just about paying tax but knowing which ones and when.
In the UK, self-employed individuals are mainly responsible for two types of taxes: Income Tax and National Insurance contributions.
You’ll pay Income Tax on your profits — that is, what you earn after deducting allowable business expenses. The tax bands and rates are the same as for employed workers, but it’s up to you to calculate and submit your return annually through Self Assessment.
On top of Income Tax
On top of Income Tax, you’ll usually pay Class 2 and Class 4 National Insurance contributions (NICs). Class 2 NICs are a fixed weekly amount, paid if your profits exceed a small threshold. Class 4 NICs are calculated as a percentage of your profits and are payable if your earnings are above a certain level.
If your turnover goes above the VAT threshold (£85,000 as of 2025), you’ll also need to register for VAT and charge VAT on your sales. But most new self-employed people start below this and only register later when required.
Keeping track of your income and expenses throughout the year makes this process much easier. Many self-employed people use accounting software or hire an accountant to stay compliant and minimize their tax bills legally.
Question: What taxes do self-employed people pay in the UK?
Answer: You pay Income Tax on your profits plus Class 2 and Class 4 National Insurance contributions. You might also need to register for VAT if your turnover is above £85,000.
Can I Be Employed and Self-Employed at the Same Time?
Wondering if you can keep your day job while starting your own business? The answer is yes — many people do both!
You can absolutely be employed and self-employed simultaneously in the UK. This means you receive a salary from an employer under PAYE, but you also earn money from your own freelance work, side business, or other self-employed activities.
When you do this, your employer deducts Income Tax and National Insurance automatically from your wages. For your self-employed income, however, you’ll need to register separately with HMRC and submit a Self Assessment tax return. This way, HMRC can calculate the tax due on your combined earnings.
It’s important to keep your income streams separate and track your earnings and expenses carefully to avoid confusion when filing your tax return. Also, some employers have policies about outside work, so it’s worth checking your contract.
Many people start self-employment part-time alongside their job to test the waters before going full-time.
Question: Can I be employed and self-employed at the same time?
Answer: Yes, you can work a regular job and run your own business. Just register as self-employed and file a tax return for your freelance income.
Common Mistakes to Avoid When Registering
Registering as self-employed is straightforward — but small mistakes can lead to fines, delays, or extra stress later on.
One of the biggest errors is waiting too long to register. Remember, you must register by 5th October following the tax year you started working. Missing this deadline can trigger penalties even if you don’t owe tax yet.
Another common mistake is using the wrong start date. It’s important to use the date you actually began trading — like when you sent your first invoice or received your first payment — not when you decided to start or registered a business name.
Some people forget their Unique Taxpayer Reference (UTR) after registration and struggle to file their tax returns. Keep this number safe, as HMRC uses it to track your self-employed income.
Others think they need a business name or formal company to register, but as a sole trader, you can trade under your own name without extra paperwork.
Finally, avoid ignoring the need to register for Self Assessment even if your income is low. Register early to avoid last-minute panic and potential penalties.
Taking a little time to get these details right means you’ll set off on the right foot with HMRC and avoid unnecessary hassle.
Question: What mistakes should I avoid when registering as self-employed?
Answer: Don’t delay registration, use the correct start date, keep your UTR safe, and remember you don’t need a business name to register as a sole trader.
FAQs about Self-Employment Registration
How long does HMRC take to process my registration?
HMRC usually sends your Unique Taxpayer Reference (UTR) within 10 working days after you register. If you don’t receive it after three weeks, contact HMRC to check.
Is registering as self-employed free?
Yes, registering with HMRC to become self-employed is completely free. Be cautious of third-party sites that charge a fee for registration — always use the official government website.
Do I need an accountant to register as self-employed?
No, you don’t need an accountant to register. The process is straightforward and can be done online. However, hiring an accountant can help manage your taxes and ensure compliance, especially as your business grows.
Do I need a business name to register?
No, if you operate as a sole trader, you can use your own name as your business name. A formal business name isn’t required to register with HMRC.
How do I stop being self-employed if I no longer trade?
You must inform HMRC that you have stopped trading by updating your Self Assessment account. This prevents unnecessary tax returns and National Insurance payments.
Summary: What to Remember Before You Register
Registering as self-employed is a key step towards working independently and managing your own business in the UK.
Before you start, remember these essentials:
- You need to register with HMRC if you earn over £1,000 from self-employment in a tax year.
- The registration deadline is 5th October following the end of the tax year you started trading.
- Gather your personal details like your National Insurance number, contact info, and the date you began working for yourself.
- Register online using the official Government Gateway for the fastest, safest process.
- Keep your Unique Taxpayer Reference (UTR) safe once you receive it.
- Understand your tax responsibilities: Income Tax, National Insurance, and possibly VAT if you exceed the threshold.
- Avoid common mistakes like late registration or using the wrong start date.
Taking care of these steps early helps you stay compliant and focus on growing your business with confidence.
Ready to Register as Self-Employed? Let Eternity Accountants Help
Taking the first step to register as self-employed can feel overwhelming — but you don’t have to do it alone.
At Eternity Accountants, we specialize in helping UK freelancers, contractors, and sole traders get set up quickly and correctly. Our experienced team knows the ins and outs of HMRC registration and self-assessment, so you can avoid costly mistakes and focus on your business.
Whether you want a step-by-step guide, help with your tax return, or full bookkeeping support, we’re here to make your self-employment journey smooth and stress-free.
Get in touch today for a free consultation — let’s make sure you start off on the right foot.
If you’re ready to get started or need expert guidance, contact Eternity Accountants today. You can call us directly, send an email, or visit our website to learn more about how we can support your self-employment journey and ensure everything is done right from the start.
