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How to register as self-employed in the UK (sole trader)

When you have to tell HMRC you work for yourself, how to do it in one go if you're a CIS subcontractor, and what to sort out once you have your UTR.

Stephen Evans, editor
Figures checked against GOV.UK and HMRC guidance
Last checked 28 Oct 2026 · Next review Apr 2027

The short answer

Tax year 2026/27

You can start work straight away, but you must register for self-assessment as a sole trader once your income from self-employment is over £1,000 in a tax year. The deadline is 5 October after the tax year ends: 5 October 2027 if you started in 2026/27. You register online on GOV.UK and HMRC sends you a Unique Taxpayer Reference (UTR). CIS subcontractors can register for self-assessment and CIS at the same time.

Do I need to register as self-employed?

You need to register for self-assessment as a sole trader if your income from working for yourself is more than £1,000 in a tax year (6 April to 5 April). That's income before expenses, so a few jobs a month will usually take you over it.

You're working for yourself, rather than for an employer, if you do things like decide how and when you work, provide your own tools and van, charge a price for the job, and put right bad work in your own time. HMRC's working for yourself page lists the signs.

Under the £1,000 limit, you usually don't need to tell HMRC. Over it, you register and send a tax return each year. You can choose to deduct the £1,000 trading allowance instead of your real costs, but for most trades the real costs are bigger, so claiming your actual expenses pays more.

When is the deadline?

Register by 5 October after the end of the tax year in which you started. If you started working for yourself between 6 April 2026 and 5 April 2027, the deadline is 5 October 2027. Your first tax return and any tax owed are then due by 31 January 2028.

There's no need to wait. Registering early gets your UTR in hand before a contractor or an accountant asks for it.

How to register, step by step

  1. Check you need to. Income from self-employment over £1,000 this tax year, or you expect it to be.
  2. Have your sign-in ready. The service asks you to sign in to your HMRC account, and lets you create sign-in details if you don't have any.
  3. Register online. Use register for self-assessment on GOV.UK and choose the option for a sole trader. Expect to be asked for your National Insurance number, the date you started, and your business details.
  4. CIS subcontractors: when it asks, say you're working as a subcontractor. That registers you for self-assessment and the Construction Industry Scheme together.
  5. Wait for your UTR. HMRC sends your 10-digit Unique Taxpayer Reference by post. GOV.UK has a tool to check when to expect it.

Registering for CIS as a subcontractor

If you work for builders or other contractors in construction, register for CIS too. Contractors then take 20% from the labour part of your pay. If you're not registered, they have to take 30%. Registering through self-assessment, as above, does both at once. If you already have a UTR, you can register for CIS on its own. See CIS registration: 20% or 30%.

What to do once you're registered

  • Keep records from day one. Every payment in and every cost, with receipts. Most sole traders use the cash basis: you record money when it arrives and costs when you pay them.
  • Put tax aside. Nothing is taken from your pay unless you're under CIS, and the bill comes in one go the following January. Our tax set-aside calculator shows how much to keep back.
  • Open a separate account. Not required, but it keeps business money apart and makes the tax return quicker.
  • Check VAT and MTD. VAT registration is compulsory once your turnover passes £90,000 in any 12 months (VAT for tradesmen). Making Tax Digital applies once your turnover passes its limit: £30,000 from April 2027, falling to £20,000 from April 2028 (MTD explained).
  • Price for tax. If you're setting rates for the first time, the day rate calculator works back from the take-home you want.

Common questions

I'm employed and do some private jobs at weekends. Do I need to register?

Yes, if the private work brings in more than £1,000 in a tax year, before expenses. You can be employed and self-employed at the same time. Your job stays on PAYE and the private work goes on a tax return.

Can I start work before my UTR arrives?

Yes. You can trade from the first day. Keep records and receipts from the start, and put some of each payment aside for tax.

Is self-employed the same as a sole trader?

For most tradespeople, yes. A sole trader is the simplest way to be self-employed: you and the business are the same for tax, and you keep the profit after tax. A limited company is a separate legal setup with its own rules.

Do I need a business bank account?

Not by law, as a sole trader. A separate account makes records, tax set-asides and MTD much easier, so most people open one.

What happens if I register late?

HMRC can charge a penalty if you tell them after the 5 October deadline. If you have missed it, register straight away rather than waiting for the next return.

Related toolWork out how much tax to put aside from day oneCompareBusiness bank accounts for sole traders, compared

Sources

  1. Become a sole trader, GOV.UK. Checked 28 Oct 2026
  2. Check how to register for Self Assessment, GOV.UK. Checked 28 Oct 2026
  3. Tax-free allowances on property and trading income, GOV.UK. Checked 28 Oct 2026
  4. What you must do as a CIS subcontractor: how to register, GOV.UK. Checked 28 Oct 2026
  5. Working for yourself, GOV.UK. Checked 28 Oct 2026

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