When and How to Register as Self-Employed in the UK
A Simple Guide for New Freelancers and Small Business Owners
Thinking about going solo? Whether you're freelancing, running an Etsy shop, consulting, or starting a side hustle, one of the first things you’ll need to do is register as self-employed with HMRC. It sounds daunting—but it’s actually quite straightforward once you know the steps.
Here’s a clear, simple guide to help you decide when to register, how to do it, and what it means for your taxes and finances.
What Does “Self-Employed” Actually Mean?
If you’re working for yourself and not through an employer who pays your tax and National Insurance (NI) via PAYE, you’re probably self-employed.
Most self-employed people register as sole traders, even if they haven’t officially branded themselves as a business. This includes:
- Freelancers and consultants
- Tradespeople
- Online sellers (e.g. Etsy, eBay, Shopify)
- Tutors, coaches, personal trainers
- Side-hustlers making regular income
Alternatively, you could set up a partnership or a limited company, but this blog focuses on sole traders - the simplest option when you're starting out.
When Do You Need to Register as Self-Employed?
HMRC gives you some leeway when you’re just starting out—but not much.
✅ You must register if:
- You’ve earned more than £1,000 from self-employment in a tax year (6 April to 5 April)
- You’re clearly running a business, even if you’re not over the £1,000 threshold (e.g. you’ve registered a website, taken on clients, advertised your services)
📅 Key Deadline:
You need to register by 5 October following the end of the tax year in which you started.
Example:
If you earned over £1,000 from self-employment between 6 April 2024 and 5 April 2025, you must register by 5 October 2025.
That said, it’s usually better to register as soon as you know you’ll be earning money this way—it helps you stay on top of your responsibilities and avoid last-minute stress.
How to Register with HMRC
Registering is free and can be done online in under 10 minutes. Here’s how:
🧾 You’ll need:
- Your full name and address
- Your National Insurance number
- The date you started working for yourself
- A description of your business activities
👣 Step-by-Step:
1. Go to gov.uk/register-for-self-assessment
2. Choose “Register if you’re self-employed”
3. Fill in your details and submit the form
HMRC will then post your Unique Taxpayer Reference (UTR) number to you within 10 working days. This is your official ID for doing tax returns.
Once you're registered, you’ll also get access to your personal Self Assessment portal online.
What Changes Once You’re Registered?
You’re now officially a sole trader. That means:
- You’ll need to complete a Self Assessment tax return every year
- You may need to pay Class 2 and Class 4 National Insurance Contributions, depending on your profits
- You must keep records of all income and expenses
- You’ll be responsible for setting aside money for tax (and possibly payments on account)
This is where good habits matter! Start by keeping a log of your income and expenses and consider using software like Xero to save time and reduce errors.
Top Tips for New Sole Traders
- Open a separate bank account for your business (even if not required - it makes everything easier)
- Track everything from day one: receipts, mileage, invoices, and business purchases
- Claim allowable expenses: things like business use of home, software, travel, etc.
- Don’t ignore letters from HMRC - get into the habit of checking your Self Assessment account
- If in doubt, ask a professional - especially in your first year
Need a Hand?
Becoming self-employed is exciting - but the admin can feel overwhelming at first. At Indie Financials, we support freelancers, creatives, and small business owners with the practical side of running a business - from registration to bookkeeping and tax returns.
If you’d like help getting started, or you’re not sure what your next steps should be, get in touch for a friendly chat. We’re here to help make life simpler.