If you\u2019ve decided to take the leap and start working for yourself, you\u2019re at the beginning of an exciting journey. But before you get stuck in, you need to register as self-employed first.<\/p>\n\n\n\n
Our guide on how to register as self-employed will show you how, step-by-step. <\/p>\n\n\n\n
We\u2019ll take you through the process in depth, but here\u2019s a quick overview of how to register:<\/p>\n\n\n\n
Once registered, you\u2019ll have a few jobs to do, like sending an annual Self Assessment tax return<\/a>.<\/p>\n\n\n\n If you work for yourself, you have to register with HMRC to pay your tax. But how do you know if you classify as self-employed?<\/p>\n\n\n\n Note:<\/strong> You have a tax-free trading allowance of \u00a31,000<\/a>. If your total income from self-employment (before expenses) is less than \u00a31,000 in a tax year, you usually don\u2019t need to register or pay tax on it.<\/p>\n\n\n\n If you earn more than this and meet the criteria above, you probably need to register. HMRC explains more about what being self-employed means<\/a> on their website.<\/p>\n\n\n\n Registering is simple. Head to the government\u2019s online registration portal<\/a> to get started.<\/p>\n\n\n\n If you haven\u2019t used these online government services before, you\u2019ll need to create a Government Gateway account. Once you have a user ID and password, you can sign in and register for self assessment.<\/p>\n\n\n\n You\u2019ll need to give some details, including:<\/p>\n\n\n\n After you register, HMRC will send a letter with your 10-digit Unique Taxpayer Reference (UTR). You need this number to file your tax returns, so keep it safe.<\/p>\n\n\n\n This process usually takes around 10 days (or 15 working days if you\u2019re abroad). You can check when you can expect a reply on the website or by calling HMRC.<\/p>\n\n\n\n If you\u2019ve registered as self-employed before, you don\u2019t need to register again. You can simply reactivate your existing account using your old UTR.<\/p>\n\n\n\n You\u2019ll also need to decide on a name for your business. Many people trade under their own name, but you could pick one that helps make you stand out.<\/a><\/p>\n\n\n\n If you choose a trading name, check that no other businesses are using it. This helps avoid confusion and copyright infringement<\/a>.<\/p>\n\n\n\n According to HMRC, you should register as soon as you start trading. However, there\u2019s a deadline<\/a>. You must register by 5 October after the end of the tax year in which you started your business.<\/p>\n\n\n\n For example, if you started your business in July 2025, you need to register with HMRC by 5 October 2026.<\/p>\n\n\n\n Ideally, don\u2019t leave it this late. If you miss the deadline, you could face penalties.<\/p>\n\n\n\n Being self-employed doesn\u2019t necessarily mean that you\u2019re a sole trader. If you work for yourself, on your own, you\u2019re probably a sole trader.<\/p>\n\n\n\n However, if you\u2019re in a business partnership, you need to register as a partner, not a sole trader. You can read more about registering as a partner here<\/a>.<\/p>\n\n\n\n If you\u2019re not sure, our guide on the differences between two<\/a> can help.<\/p>\n\n\n\n If you set up a limited company, things are a bit more complex. You\u2019re the owner of a company, as well as its employee. This means your tax and National Insurance will work differently. Our guide to setting up a limited company<\/a> covers the details.<\/p>\n\n\n\n If you work in construction, you need to register for the Construction Industry Scheme (CIS)<\/a>.<\/p>\n\n\n\n This scheme means contractors deduct money from a subcontractor\u2019s payments and pass it to HMRC. If you don\u2019t register for CIS, contractors must deduct 30 per cent from your payments instead of 20 per cent.<\/p>\n<\/div>\n\n\n\n Once registered, you have to stay on top of your admin.<\/p>\n\n\n\n Most importantly, you must keep accurate records<\/a> of sales and business expenses. Keeping bank statements and receipts organised will make filing your tax return much easier.<\/p>\n\n\n\n By 31 January every year, you must file your Self Assessment tax return<\/a> online.<\/p>\n\n\n\n You\u2019ll usually make payments to HMRC on 31 January and 31 July<\/a>.<\/p>\n\n\n\n As well as income tax<\/a>, you\u2019ll pay Class 4 National Insurance contributions if your profits are over a certain amount (\u00a312,570 for the current tax year).<\/p>\n\n\n\n Important update: <\/strong>As of April 2024, Class 2 National Insurance contributions are no longer mandatory for most self-employed people. However, you might choose to pay them voluntarily to ensure you qualify for the State Pension<\/a> if your profits are low.<\/p>\n<\/div>\n\n\n\n As of 6 April 2026, the government began phasing in Making Tax Digital (MTD) for Income Tax<\/a>, which will change how you report your earnings. Instead of one annual tax return, you\u2019ll keep digital records and send quarterly tax updates, as well as one final return and payment, to HMRC using compatible software<\/a>.<\/p>\n\n\n\n If your qualifying income is more than \u00a350,000, it’s now mandatory that you pay tax through MTD, as of 6 April 2026.<\/p>\n\n\n\n If your qualifying income is more than \u00a330,000, you\u2019ll need to sign up from 6 April 2027.<\/p>\n\n\n\n It\u2019s a good idea to start keeping digital records now so you\u2019re ready when the rules change.<\/p>\n\n\n\n Self-employed insurance<\/a> helps protect you against risks that could cost your business money.<\/p>\n\n\n\n Check out our FAQs for more information<\/a>.<\/p>\n\n\n\n Promotion<\/em><\/p>\n<\/div>\n\n\n\n If you stop working for yourself, you must tell HMRC as soon as possible. If you don\u2019t, they\u2019ll still be expected to complete tax returns and you might get fined for not completing them.<\/p>\n\n\n\n You\u2019ll need to file a final tax return and confirm you\u2019ve stopped trading. Make sure you have your UTR and National Insurance number ready when you contact them.<\/p>\n\n\n\n As one of the UK’s biggest business insurance<\/a> providers, we specialise in public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\nDo I need to register as self-employed?<\/strong><\/h2>\n\n\n\n
You\u2019re likely self-employed if you:<\/strong><\/h3>\n\n\n\n
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How do I register as self-employed?<\/strong><\/h2>\n\n\n\n
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If you\u2019ve filed a return before<\/strong><\/strong><\/h3>\n\n\n\n
How to register a business name<\/strong><\/h3>\n\n\n\n
When do I need to register as self-employed?<\/strong><\/h2>\n\n\n\n
Do I need to register as a sole trader?<\/strong><\/h2>\n\n\n\n
What if I have a limited company?<\/strong><\/h3>\n\n\n\n
Registering as self-employed in the construction industry<\/strong><\/h3>\n\n\n\n
Responsibilities<\/strong> once you’re self-employed<\/strong><\/h2>\n\n\n\n
Self-employed tax responsibilities <\/h3>\n\n\n\n
Be aware of Making Tax Digital (MTD)<\/strong><\/h2>\n\n\n\n
What insurance do self-employed people need?<\/strong><\/h2>\n\n\n\n
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How to stop being self-employed<\/strong><\/h2>\n\n\n\n
Useful guides for small business owners<\/strong><\/h3>\n\n\n\n
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Ready to set up your cover?<\/h3>\n\n\n\n