How to Register as Self-Employed in the UK: A Step-by-Step Guide

Thinking of starting your own business or going freelance? Becoming self-employed in the UK is an exciting move, but before you can start trading officially, you need to register with HMRC.

This guide walks you through how to register as self-employed in 2025, what information you’ll need, and what to do once you’re set up.

Who Needs to Register as Self-Employed?

You must register as self-employed if you:

• Run your own business as an individual (sole trader)

• Earn money from freelance or contract work

• Rent out property, sell products, or provide services independently

• Have business income over £1,000 in a tax year (the trading allowance threshold)

If your total self-employed income is below £1,000, you don’t need to register (though you can still choose to if you want to claim expenses or build National Insurance contributions).

When to Register

You need to register by 5 October following the end of the tax year in which you started trading. (For example, if you started your business in June 2025, you must register by 5 October 2026.)

Missing this deadline could result in penalties, so it’s best to register as soon as your business is up and running.

Step-by-Step: How to Register as Self-Employed

Step 1: Gather Your Information

Before you start, make sure you have:

• Your National Insurance number

• Your personal details (address, date of birth, contact info)

• Your business start date

• A description of the type of work you do

Step 2: Create a Government Gateway Account

Go to GOV.UK and create a Government Gateway user ID if you don’t already have one. This gives you secure access to HMRC’s online services.

Step 3: Register for Self Assessment

Once logged in, choose to register for Self Assessment and Class 2 National Insurance as a sole trader. You’ll fill in details about yourself and your business activities.

Step 4: Wait for Your Unique Taxpayer Reference (UTR)

After you’ve registered, HMRC will send you a 10-digit Unique Taxpayer Reference (UTR) by post. Keep this safe, because you’ll need it to submit your annual tax return.

Step 5: Set Up Your Online Account

Use your Government Gateway login to access your online HMRC account, where you can manage tax payments, update details, and eventually file your Self Assessment return.

What Happens After You Register

Once registered, you’ll need to:

• Keep records of your income and expenses (digital is best)

• File a Self Assessment tax return each year by 31 January

• Pay Income Tax and National Insurance on your profits

For the 2025/26 tax year, the Self Assessment deadline will be 31 January 2027 if filing online.

Do You Need to Register for Anything Else?

Depending on your business, you may also need to:

• Register for VAT if your turnover exceeds £90,000 per year

• Register for PAYE if you plan to employ anyone

• Consider voluntary Class 2 NICs if your profits are low (to maintain State Pension contributions)

  
  

Common Mistakes to Avoid

• Waiting too long to register (which can lead to penalties)

• Forgetting to track income and expenses from day one

• Mixing business and personal finances

• Not budgeting for your future tax bill

Setting up a separate business bank account can help you stay organised from the start.

Final Thoughts

Registering as self-employed in the UK is straightforward once you know the steps. By getting it done early, keeping accurate records, and staying on top of your tax deadlines, you can focus on what matters most: growing your business.

At Highway 61, we help new sole traders and freelancers get started the right way, from registration to ongoing tax support.

Ready to register as self-employed? Contact Highway 61 today for help setting up and managing your finances from day one.