How to Register as Self-Employed with HMRC
Three practical steps to register as a sole trader, organise your banking and prepare for your first Self Assessment tax return.
Starting to work for yourself does not automatically mean every small amount of casual income must be registered. However, if your gross trading income is more than the current £1,000 trading allowance in a tax year, you will normally need to register with HMRC as a sole trader and complete Self Assessment.
Register with HMRC and get your UTR number
If you start working for yourself as a sole trader, you will normally need to register for Self Assessment when your gross trading income is more than £1,000 in a tax year. Income of £1,000 or less may be covered by the trading allowance, although there are circumstances where you may still need or choose to register.
If registration is required, you must usually tell HMRC by 5 October following the end of the tax year. Registering as a sole trader also registers you for Self Assessment.
HMRC will issue your Unique Taxpayer Reference (UTR). This 10-digit number is important for future tax returns and correspondence with HMRC, so keep it somewhere secure.
Register as a sole trader on GOV.UKOpen a separate bank account for your trade
A separate business bank account is generally a practical recommendation for a sole trader, rather than a legal requirement. Use it only for money coming into and going out of your trade.
Keeping business transactions in one place makes your bookkeeping and tax return much easier. It can also help you spot missing expenses and prevents personal spending becoming mixed up with trade activity.
A sole trader can also use FreeAgent to keep track of self-employed income and expenses digitally, which keeps your records tidy and helps prepare for Making Tax Digital for Income Tax if and when you need to comply. FreeAgent can be available free when you use an eligible Mettle business bank account, subject to Mettle's current eligibility terms, so check what applies to your account before relying on it.
Get support preparing and submitting your tax return
In Front Accounting can prepare your accounts and Self Assessment return, review your allowable business expenses, calculate the tax due and submit the completed return to HMRC.
We can also help you prepare for Making Tax Digital for Income Tax. It is being introduced in stages, starting with qualifying income over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028.
Get help with your tax return
Leave your details and our team will contact you about your Self Assessment and sole trader accounts.
Tax rules and filing requirements depend on your circumstances. This guide is general information, not personal tax advice. If you are unsure, check with HMRC or speak to an accountant.
Common Questions
When do I need to register as self-employed with HMRC?
You normally need to register as a sole trader if your gross trading income is more than £1,000 in a tax year. If you need to complete a return and have not filed one before, you must usually tell HMRC by 5 October following the end of that tax year. Different rules or reasons to register can apply, so check your position with HMRC if you are unsure.
What is a UTR number?
A Unique Taxpayer Reference, or UTR, is a 10-digit number HMRC uses to identify you for tax. Keep it safe because you will need it for Self Assessment filings and when dealing with HMRC.
Do sole traders need a separate business bank account?
A separate business bank account is not generally a legal requirement for a sole trader, but it is a sensible practical step. Keeping trade income and expenses together makes bookkeeping easier and helps separate business spending from personal spending.
Can an accountant register me for Self Assessment?
Yes. An accountant can help you check whether registration is needed and register you with HMRC as your agent. You can also register yourself using the official GOV.UK service.
When is the Self Assessment tax return deadline?
The usual deadline for filing an online Self Assessment return and paying the tax due is 31 January following the end of the tax year. Paper returns normally have an earlier 31 October deadline.