How to Register as Self-Employed with HMRC

If you have started working for yourself in the UK, you need to register as self-employed with HMRC. This guide walks you through exactly how to do it, when you must register, what you will need and what happens next.

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When do you need to register?

You must register as self-employed with HMRC if your self-employment income exceeds £1,000 in a tax year (6 April to 5 April). This is the trading allowance — if your gross income from self-employment is £1,000 or less, you do not need to register or declare that income on a tax return.

If you exceed the threshold, you must register by 5 October following the end of the tax year in which you started trading. For example, if you started self-employment in June 2025 (during the 2025/26 tax year), you must register by 5 October 2026.

You can also register voluntarily even if your income is below £1,000. This is worth considering if you want to build up National Insurance credits towards your State Pension — paying Class 4 NI on profits above £12,570 counts as a qualifying year.

Your Unique Taxpayer Reference (UTR) arrives by post and can take up to 10 working days. Register as early as possible — you cannot file a tax return without a UTR, and leaving registration too late risks missing your first filing deadline.

What you need before you register

Before you start the registration process, gather the following:

How to register — step by step

Step 1 — Create a Government Gateway account

If you do not already have one, create a Government Gateway account at gov.uk/log-in-register-hmrc-online-services. You will receive a 12-digit user ID by email. Keep this safe — you need it every time you log in to HMRC online services.

Step 2 — Go to the self-employment registration page

Visit gov.uk/register-for-self-assessment and sign in with your Government Gateway credentials. Select the option to register as self-employed.

Step 3 — Complete the registration form

The online form takes around 10–15 minutes. You will be asked for your personal details, National Insurance number, the date you started self-employment, and a description of your business. Double-check everything before submitting — errors can delay your UTR.

Step 4 — Wait for your UTR

HMRC will post your Unique Taxpayer Reference (UTR) to your home address within 10 working days. Your UTR is a 10-digit number that identifies you for all future tax dealings. You cannot file a return without it.

Step 5 — Activate your Self Assessment account

Once your UTR arrives, HMRC will also send an activation code by post. Enter this code in your HMRC online account to activate Self Assessment. The activation code can take up to 7 working days to arrive after your UTR letter.

Step 6 — File your first tax return

After activation, you can file your first Self Assessment tax return online. The deadline for online filing and payment is 31 January following the end of the tax year. For your first return, you will need records of all self-employment income and allowable expenses for the period covered.

What is a Unique Taxpayer Reference?

A Unique Taxpayer Reference (UTR) is a 10-digit number HMRC assigns when you register for Self Assessment. It identifies you for all tax purposes and never changes, even if your circumstances change.

Your UTR appears on all letters from HMRC about your tax affairs. You need it to file returns, contact HMRC about your account, and authorise an accountant to act on your behalf. Keep the letter safe — HMRC will not resend it quickly if you lose it.

What tax will you pay?

As a self-employed sole trader, you pay income tax on your profits (income minus allowable expenses) through Self Assessment, plus Class 4 National Insurance on profits above £12,570. Both are calculated and paid together when you submit your annual return.

The payment deadline is 31 January following the end of the tax year. For the 2025/26 tax year (ending 5 April 2026), your first payment is due by 31 January 2027.

First-time filers are often surprised by payments on account. When you pay your first bill in January, HMRC also asks for an advance payment towards next year's tax — typically half your current bill, with a second instalment due the following July. Budget for this from the start.

Estimate your income tax and Class 4 NI before your first return is due.

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Do you need to register for VAT?

VAT registration is separate from self-employment registration. You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily if your turnover is below the threshold — useful if you want to reclaim VAT on business purchases.

Registering for VAT adds reporting obligations (quarterly returns under Making Tax Digital) but can make sense if most of your clients are VAT-registered businesses who can reclaim the VAT you charge.

Check whether VAT registration makes sense for your turnover.

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Sole trader vs limited company

Registering as self-employed makes you a sole trader by default — the simplest structure with minimal admin. A limited company is a separate legal entity: more paperwork, but potential tax advantages at higher income levels and limited liability protection.

Most freelancers start as sole traders and consider incorporating later as income grows. The right choice depends on your profit level, appetite for admin, and whether clients require a limited company structure.

Compare take-home pay as a sole trader versus a limited company.

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Record keeping requirements

From the day you start trading, keep accurate records of all business income and expenses. This includes invoices issued, receipts for purchases, bank statements showing business transactions, and mileage logs if you claim travel costs.

HMRC requires you to keep records for at least 5 years after the 31 January submission deadline for the relevant tax year. Good records from day one make your first return straightforward and protect you if HMRC ever queries your figures.

What if you have both employment and self-employment income?

Having a full-time or part-time PAYE job does not prevent you from registering as self-employed. Many freelancers start their business while still employed, then transition to full-time self-employment later.

You declare both income sources on a single Self Assessment return. Your employer deducts tax on your salary through PAYE; you declare self-employment profits separately. HMRC calculates your total tax liability across both sources and adjusts for tax already paid through PAYE.

Frequently asked questions

How long does it take to register as self-employed?

The online form takes 10-15 minutes. Your UTR arrives by post within 10 working days. Allow 3-4 weeks from starting before you have everything needed to file a return.

Is there a fee to register as self-employed?

No. Registering as self-employed with HMRC is completely free at gov.uk.

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

Yes. Having PAYE employment does not prevent you from registering as self-employed. You declare both income sources on your annual Self Assessment return.

What happens if I register late?

HMRC may issue a penalty but is generally reasonable if you register promptly. Always register before filing your first return.

Do I need an accountant to register as self-employed?

No. Registration is straightforward and designed to be completed without professional help. An accountant becomes more valuable when filing your first tax return.

This guide is for general information only and does not constitute tax advice. Tax rules are complex and your circumstances may vary. Always verify deadlines and figures at gov.uk or with a qualified accountant before filing.