top of page
Screenshot 2025-05-26 210556.png

Home of Tax Assessments and Compliance Services (T.A.C.S.)

Becoming a Sole Trader: What It Means and What to Do

Who needs to register

If you're working for yourself—whether you're freelancing, running a side hustle, or offering services directly to customers—you’re classed as self-employed and will typically register as a sole trader.

This is the most common and straightforward business structure in the UK. It means you run the business as an individual and take full responsibility for its income, expenses, and taxes.

When to Register

You must register with HMRC as a sole trader if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April).
Deadline: You must register by 5 October of your second trading year.

After You Register

Once you're officially self-employed, here’s what comes next:

  • Submit a Self Assessment tax return every year

  • Pay Income Tax and National Insurance on your profits

  • Keep clear business records (income, expenses, receipts)

  • Check if you need to register for VAT (threshold: £90,000)

  • Plan ahead—you may need to make Payments on Account

  • Stay informed about Making Tax Digital, which will eventually require you to keep digital records and submit quarterly updates

 

Starting simple is smart—but staying compliant is essential as your business grows.

📩 Need help registering as a sole trader, tracking your income, or preparing your first tax return? I offer clear, practical support to help you meet HMRC’s requirements with confidence and ease.
Get in touch today and take the next step in building your business, the right way
.

Register as a Sole Trader -get your UTR number

Registering as a sole trader can sometimes be time consuming. You can use our services and you will benefit from:

  • Fast and secure online service

  • Simplified Application

  • Support from a Licenced accountant

bottom of page