How to Register as Self-Employed with HMRC 2026: Deadlines, UTR & Tax Rules Quick answer
To register as self-employed in the UK, you usually need to tell HMRC that you have started working for yourself as a sole trader.
You do this by registering for Self Assessment and setting up, or signing into, a Government Gateway account.
You must register by 5 October after the end of the tax year in which you started trading.
For example, if you started trading during the 2025/26 tax year, which ran from 6 April 2025 to 5 April 2026 , you normally need to tell HMRC by 5 October 2026.
After registering, HMRC will send you a Unique Taxpayer Reference, usually called a UTR. You use this to file your Self Assessment tax return.
You will need to register as self-employed if you:
earn more than the £1,000 trading allowance
work for yourself as a sole trader
invoice clients directly
sell goods or services for profit
freelance or contract outside PAYE
receive self-employed business income
need to complete a Self Assessment tax return
You should also think about Income Tax, Class 4 National Insurance, VAT registration, business records, payments on account and Making Tax Digital.
If you are self-employed and starting to hire staff, compare payroll software and payroll providers before setting up PAYE.
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Payroll software only Managed payroll service Fully outsourced payroll Payroll bureau / accountant Software is usually cheaper; outsourced payroll gives more support.
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Office / admin business Retail / shop Hospitality / restaurant / café Construction / trades Care / healthcare Agency / variable staff Professional services Multi-site business Variable hours, shifts and CIS can increase payroll complexity.
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No Basic pension submissions Full auto-enrolment support Includes pension assessment, contributions or pension file uploads.
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No Yes, include CIS Useful for construction businesses paying subcontractors.
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If you are hiring staff, paying subcontractors or moving from sole trader to employer, compare payroll providers before choosing.
Contents
Establish your business structure
Gather all of your required information
Register online
Set up your financial records
Understand your tax obligations
Seek professional advice
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: August 2026
Key Takeaways
Most self-employed people register with HMRC by registering for Self Assessment.
You must usually register by 5 October after the end of the tax year in which you started trading.
HMRC sends a Unique Taxpayer Reference after registration.
Online Self Assessment tax returns are usually due by 31 January after the end of the tax year.
You may need to register if your self-employed income is more than the £1,000 trading allowance.
Sole traders should keep records of business income and expenses.
Self-employed people may pay Income Tax and Class 4 National Insurance on profits.
VAT registration may be needed if taxable turnover exceeds the VAT threshold.
Making Tax Digital for Income Tax starts from 6 April 2026 for sole traders and landlords with qualifying income over £50,000.
MTD for Income Tax starts from 6 April 2027 for sole traders and landlords with qualifying income over £30,000.
If you employ staff, you may need to set up PAYE and use payroll software or a payroll provider.
Compare accounting, MTD and payroll support if your business is becoming harder to manage manually.
Do you need to register as self-employed? You might need to register as self-employed if you are working for yourself and earning trading income.
Situation
Do you usually need to register?
You earn less than £1,000 from self-employment in the tax year
Usually no, but check your circumstances
You earn more than £1,000 from self-employment
Usually yes
You freelance alongside PAYE employment
Usually yes if over the trading allowance
You invoice clients directly
Usually yes
You sell goods or services for profit
Usually yes
You only sell personal items occasionally
Usually no
You are setting up a limited company
Different process through Companies House
You are in a business partnership
Register as a partner and partnership
You employ staff
You may also need to register as an employer
You rent out property
You may need Self Assessment, but this is property income rather than self-employment
Step 1: Establish your business structure Before registering, you need to decide on your business structure – the most common of these bring as a sole trader. But, you can also choose to form a partnership or a limited company. Remember that whatever you decide on, each has different legal and tax implications, so choose the one that best fits your business needs.
Here’s a little more info on each of those three options:
Structure Best For Key Features
Sole Trader
Freelancers, contractors, small businesses
Simple setup, full control, fewer admin requirements
Partnership
Two or more people running a business
Shared profits & responsibilities
Limited Company
Businesses seeking liability protection
Separate legal entity, director responsibilities, Companies House registration required
Most self-employed individuals register as sole traders, and if you form a limited company, you register with Companies House first, then set up PAYE and Corporation Tax separately.
Before registering as self-employed, gather:
your National Insurance number
your full name
your date of birth
your home address
your phone number and email address
your business name, if you use one
your business address, if different
the nature of your work
the date you started trading
your Government Gateway login, if you already have one
If you have already registered for Self Assessment for another reason, you may still need to register again as a sole trader.
Step 3: Register online Most people register as self-employed online through GOV.UK.
The general process is:
Go to the GOV.UK Self Assessment registration page.
Create or sign in to your Government Gateway account.
Choose the option to register as self-employed or as a sole trader.
Provide your personal details.
Provide your business details.
Confirm the date you started trading.
Submit the registration.
Wait for HMRC to issue your Unique Taxpayer Reference.
HMRC will usually send your UTR by post.. remember to keep your UTR safe because you will need it to file Self Assessment tax returns and manage your tax account.
What is a UTR number?
A UTR, or Unique Taxpayer Reference, is a 10-digit reference number issued by HMRC, and you use it for Self Assessment.
You will need your UTR when:
filing your tax return
speaking to HMRC
paying tax
appointing an accountant
registering for the Construction Industry Scheme
applying for some finance products
proving you are registered for Self Assessment
Do not confuse your UTR with your National Insurance number – your National Insurance number identifies you personally for tax and benefits, and your UTR identifies your Self Assessment tax record.
Step 4: Set up your financial records Once you are self-employed, you need to keep accurate records of your business income and expenses.
Good records make it easier to:
complete your Self Assessment tax return
claim allowable expenses
calculate profit
set aside money for tax
prepare for VAT registration if needed
prepare for Making Tax Digital if in scope
share records with an accountant
avoid missing income or expenses
Useful records include:
invoices issued
payments received
business expenses
receipts
mileage
bank statements
software subscriptions
home working costs where relevant
equipment purchases
subcontractor payments
VAT records if registered
You can keep records using accounting software, spreadsheets or bookkeeping tools, but MTD rules may require compatible software if you are in scope.
Step 5: Understand your tax obligations Self assessment tax return
You must complete a self-assessment tax return each year to report your income and calculate your tax liability.
Remember all of the following:
The tax year runs from 6 April to 5 April. You must submit your tax return by 31 January following the end of the tax year. If you owe tax, you must pay it by 31 January.
National insurance contributions
Type Who Pays How It Works
Class 2
Abolished as a mandatory weekly charge (reforms introduced)
May receive credits automatically depending on profits
Class 4
Self-employed earning above threshold
Percentage of annual profits
Class 2: Class 4
VAT registration
If your business turnover exceeds the VAT threshold (currently £85,000), you must register for VAT. You can also choose to register voluntarily if it benefits your business.
Registering as self-employed vs registering as an employer Registering as self-employed and registering as an employer are different.
Registration Who needs it? What it is for
Self-employed / sole trader registration
People working for themselves
Self Assessment, UTR, Income Tax and National Insurance
VAT registration
Businesses over the VAT threshold or registering voluntarily
Charging and reclaiming VAT
Employer registration
Businesses hiring staff
PAYE, payroll, payslips, tax and NI deductions
CIS registration
Construction contractors or subcontractors
Construction Industry Scheme deductions and reporting
Limited company registration
Businesses forming a company
Companies House, Corporation Tax and director duties
Step 6: Seek professional advice You can register as self-employed yourself, but software or an accountant can help if your income, expenses or tax position is becoming more complex.
You might want accounting software if you need:
invoices
expense tracking
bank feeds
receipt capture
VAT returns
MTD-compatible records
mileage tracking
reports
accountant access
You might want an accountant if you need help with:
allowable expenses
Self Assessment
payments on account
VAT
CIS
rental income
multiple income streams
tax planning
business structure
limited company decisions
payroll setup
If you start employing staff, compare payroll software or payroll providers as well.
Making Tax Digital for self-employed people Making Tax Digital for Income Tax is being introduced in stages.
Start date Who is affected?
6 April 2026
Sole traders and landlords with qualifying income over £50,000 based on the 2024/25 tax return
6 April 2027
Sole traders and landlords with qualifying income over £30,000 based on the 2025/26 tax return
6 April 2028
Sole traders and landlords with qualifying income over £20,000 based on the 2026/27 tax year
Qualifying income generally means gross income from self-employment and property before expenses, and if you are in scope, you will need to:
keep digital records
use MTD-compatible software
send quarterly updates to HMRC
submit a final tax return or final declaration
keep your bookkeeping up to date
Do not use the old £10,000 MTD threshold in current 2026 guidance.
If you are not yet in scope, it is still worth choosing bookkeeping software that can support MTD later.
Common Mistakes to Avoid ❌ Missing the 5 October registration deadline
❌ Not setting aside money for tax
❌ Failing to keep digital records under MTD
❌ Forgetting about Payments on Account
❌ Mixing personal and business finances
Self-Employed Costs to Expect Registering as self-employed with HMRC is free. However, running a self-employed business can involve other costs.
Cost Typical cost guide
Registering as self-employed
Free
Self Assessment filing yourself
Free
Accounting software
Around £10-£35/month
Accountant for a basic sole trader return
Around £150-£400/year
Bookkeeping support
Varies by workload
VAT registration
Free through HMRC
Business bank account
Free to paid plans
Payroll software if hiring staff
Varies by employee numbers
Payroll provider if outsourcing
Usually monthly fee
Insurance
Varies by trade
Professional memberships
Varies by industry
What to do after registering as self-employed After registering, you should:
wait for your UTR
set up bookkeeping records
open a separate business bank account if useful
keep receipts and invoices
track all business income
track allowable expenses
set aside money for tax
check whether VAT might apply
check whether MTD could apply
decide whether to use accounting software
decide whether to appoint an accountant
register as an employer if hiring staff
compare payroll support if you need PAYE
FAQs: Registering as Self-Employed with HMRC When do I need to register as self-employed?
You must usually register by 5 October after the end of the tax year in which you started trading.
How do I register as self-employed?
Most people register online through GOV.UK by setting up or signing into a Government Gateway account and registering for Self Assessment as a sole trader.
What is a UTR number?
A UTR is a 10-digit Unique Taxpayer Reference issued by HMRC. You use it for Self Assessment, tax returns and tax payments.
Do I need to register if I earn under £1,000?
If your self-employed income is under the £1,000 trading allowance, you may not need to register. This depends on your circumstances, so check HMRC guidance if you are unsure.
Can I be employed and self-employed at the same time?
Yes. You can have PAYE employment and self-employed income at the same time. You may still need to register for Self Assessment if your self-employed income is above the relevant limit.
How much tax will I pay as self-employed?
Your tax depends on your profits, other income, allowances and expenses. Self-employed people may pay Income Tax and Class 4 National Insurance.
Do self-employed people pay National Insurance?
Yes, self-employed people may pay Class 4 National Insurance if profits are above the relevant threshold. Class 2 rules changed, but credits and voluntary payments can still matter.
Do I need to register for VAT?
You must register for VAT if your VAT-taxable turnover exceeds the VAT registration threshold, or if you expect it to. The current VAT registration threshold is £90,000.
What is Making Tax Digital and does it apply to me?
Making Tax Digital for Income Tax applies from 6 April 2026 if your 2024/25 qualifying income from self-employment and property was over £50,000. It applies from 6 April 2027 if your 2025/26 qualifying income was over £30,000.
Is the MTD threshold still £10,000?
No. Older guidance mentioned a £10,000 threshold, but current HMRC guidance uses phased thresholds of over £50,000 from April 2026 and over £30,000 from April 2027.
Do I need accounting software?
Not always, but accounting software can help with invoices, expenses, records, tax estimates, VAT and MTD preparation.
Do I need an accountant?
Not always. Many sole traders file themselves, but an accountant can help if you have multiple income streams, VAT, CIS, property income, higher profits or complicated expenses.
Do I need payroll if I am self-employed?
Not unless you employ staff. Payroll is for paying employees through PAYE. Your own sole trader income is usually handled through Self Assessment.
What if I register late?
Late registration can lead to penalties if it causes a late tax return or late payment. Register as soon as you realise you need to.
Compare software, accounting and payroll support Registering as self-employed is only the first step.
As your business grows, you may need help with bookkeeping, VAT, MTD, payroll or tax records.
Compare providers based on:
accounting software
MTD-compatible software
bookkeeping support
Self Assessment support
VAT support
payroll software
PAYE payroll
CIS payroll
employee payslips
pension support
accountant access
total monthly cost
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Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
