How to Register as Self-Employed in the UK: A Step-by-Step Guide for 2025/26

Started working for yourself? You must register as self-employed with HMRC and get a UTR number before you can file your first Self Assessment tax return. This step-by-step guide explains exactly how to register, what deadlines to meet, and how Accounted4Tax can handle everything for you.

Do I Need to Register as Self-Employed?

If you earn money from self-employment — whether as a sole trader, freelancer, contractor, or through a side hustle — and your income exceeds £1,000 in a tax year, you must register with HMRC and file a Self Assessment tax return. This applies even if you also have a regular employed job and pay tax through PAYE.

Register as soon as possible after you start earning self-employment income. The registration deadline is 5th October following the end of your first tax year of self-employment — but registering early avoids complications and ensures you do not miss important deadlines.

What Is a Sole Trader?

A sole trader is simply an individual who runs their own business and is personally responsible for its debts and tax liabilities. You do not need to set up a limited company or register with Companies House — you just register with HMRC. As a sole trader, you pay Income Tax and National Insurance on your self-employment profits through the Self Assessment system.

How to Register as Self-Employed With HMRC — Step by Step

Here is exactly how to register as self-employed and get your UTR number:

1. Create a Government Gateway account at gov.uk if you do not already have one

2. Go to the HMRC Self Assessment registration page and select the option to register for Self Assessment and National Insurance contributions

3. Complete the registration form with your personal details, National Insurance number, the date you started self-employment, and the nature of your business

4. Submit your registration — HMRC will issue you a UTR (Unique Taxpayer Reference) number by post, typically within 10 working days

5. Activate your UTR in your Government Gateway account to gain full access to your HMRC records

6. File your first Self Assessment tax return by 31st January following the end of your first tax year

Alternatively, Accounted4Tax can handle your entire registration with HMRC — including completing and submitting all the necessary paperwork and monitoring the process until your UTR number arrives.

What Is a UTR Number and Why Do I Need It?

A UTR (Unique Taxpayer Reference) number is a unique 10-digit number issued by HMRC to everyone registered for Self Assessment. It identifies you in the HMRC system and is required every time you file a tax return, contact HMRC about your tax, or authorise an accountant to act on your behalf. Your UTR number stays with you for life.

What Records Do I Need to Keep as Self-Employed?

HMRC requires you to keep accurate records of all your business income and expenses, including:

• Records of all money you receive from clients and customers — invoices, receipts, bank statements

• Records of all business expenses — receipts, invoices, bank statements

• Mileage logs if you use a vehicle for business purposes

• Bank statements for your business bank account

• Any CIS payment and deduction statements if you work in the construction industry

You must keep these records for at least five years after the 31st January submission deadline for the relevant tax year.

Do I Need to Pay National Insurance as Self-Employed?

Yes — as a self-employed sole trader, you pay two classes of National Insurance:

• Class 2 National Insurance — a flat weekly rate, currently £3.45 per week, paid if your profits exceed £12,570 per year. This is now collected through your Self Assessment return

• Class 4 National Insurance — currently 9% on profits between £12,570 and £50,270, and 2% on profits above £50,270

Both classes are calculated and collected through your Self Assessment tax return — there is no separate payment required.

Do I Need to Register for VAT?

If your taxable business turnover exceeds £90,000 in any rolling 12-month period, you must register for VAT. Once registered, you will need to charge VAT on your invoices and file regular VAT returns. Accounted4Tax handles VAT registration and quarterly VAT return submissions for self-employed clients.

Self-Employed vs Limited Company — Which Is Right for You?

Most people starting out begin as sole traders, and this is often the right choice initially. However, as your income grows, running through a limited company can become more tax-efficient — particularly if your profits exceed approximately £35,000 to £40,000 per year.

A limited company pays Corporation Tax on profits rather than Income Tax, which can result in significant savings. However, there are additional costs and administrative requirements. Accounted4Tax provides specialist advice on business structure and helps clients transition from sole trader to limited company when the time is right.

Making Tax Digital for the Self-Employed

From April 2026, self-employed people earning over £50,000 must join Making Tax Digital for Income Tax — quarterly digital submissions using HMRC-approved software, plus a year-end Final Declaration. The threshold drops to £30,000 in 2027 and £20,000 in 2028. Accounted4Tax offers MTD plans from £24 per month including software setup and all quarterly submissions.

Get Your Self-Employment Tax Right From Day One

Starting out as self-employed can feel overwhelming when it comes to tax — but it does not have to be. Accounted4Tax handles UTR registration, Self Assessment returns, National Insurance, VAT, and Making Tax Digital for self-employed clients across the UK. Book a free consultation today — call us on 07563 811938, WhatsApp us, or book online.