--- title: "How to Register as Self Employed in the UK | HLS | HLS Accounts" description: "A plain English guide to registering as self employed with HMRC: what you need, the steps to follow, and what happens once you are registered." canonical: "https://hlsaccounting.co.uk/blog/how-to-register-as-self-employed-uk" last_updated: "2026-10-29T15:27:39.174Z" --- # How to register as self employed in the UK ![Smiling blonde woman with long hair wearing pink blazer and black top against dark vertical panels](/_next/image?url=%2Fapi%2Fmedia%2Ffile%2Fhannah-1-128x148.png%3Fv%3D1773230081541&w=128&q=75&dpl=dpl_323YbtH6AZDkKuz2tPVdmK5zmGfE) Hannah SimpsonChartered Accountant PublishedWednesday, 28 October 2026 ![Smiling woman in a denim shirt and apron at a till screen, next to the headline How to register as self employed in the UK](/_next/image?url=%2Fapi%2Fmedia%2Ffile%2Fhow-to-register-self-employed-blog-hero.png%3Fprefix%3Dtenants%252F69aeb409299f734b25d026f2%26v%3D1791377281279&w=3840&q=75&dpl=dpl_323YbtH6AZDkKuz2tPVdmK5zmGfE) To register as self employed in the UK, you sign up with HMRC for Self Assessment, usually online with a Government Gateway account. It is free, it takes most people well under an hour, and once you are registered HMRC sends you a Unique Taxpayer Reference (UTR) so you can file your tax return. This guide walks you through what you need, the steps to follow, and what happens next, in plain English. ## Who needs to register as self employed? You need to register if you are working for yourself as a sole trader, which simply means you run your own business as an individual rather than through a company. That covers freelancers, tradespeople, consultants, hairdressers, cleaners, online sellers and anyone else earning money from their own work rather than an employer. You may also need to register if you have a side business alongside a job. Being employed does not stop you being self employed at the same time, and plenty of people across Cardiff and South Wales do both. > **Not sure if you are in business?** If you are selling goods or services regularly with the aim of making a profit, HMRC is likely to see that as trading. Selling a few unwanted items from home usually is not. If you are somewhere in between, it is worth asking. ## Do you have to register if you only earn a small amount? Not always. HMRC has a trading allowance, which means very small amounts of self employed income may not need to be reported. The amount is set by HMRC and can change, so we would not rely on a figure you have read somewhere without checking it first. There are also good reasons to register even when you do not strictly have to, for example to make sure your National Insurance record is protected, or to prove your income if you apply for a mortgage. If you are unsure, our guide to [whether you need an accountant as a sole trader](/blog/do-i-need-an-accountant-sole-trader) covers the early decisions in more detail. ## Sole trader or limited company? Before you register, it is worth being sure that sole trader is the right structure. Registering as self employed is for people trading as individuals. If you set up a limited company instead, the company is registered with Companies House and the process is quite different. Most people start as a sole trader because it is simpler, and switch later if it makes sense. If you are weighing the two up, read our plain English guide to [sole trader vs limited company](/blog/sole-trader-vs-limited-company) before you go any further. ## What do you need before you register? Having these to hand makes the process much quicker: - Your full name, home address and date of birth - Your National Insurance number - Your phone number and email address - The date you started, or plan to start, working for yourself - A short description of what your business does - Your business address, if it is different from your home - A business name, if you trade under something other than your own name > **Trading name tip:** as a sole trader you can trade under your own name or a business name. If you choose a business name, it cannot include words like "Limited" or "Ltd", and it should not be the same as an existing registered trade mark. ## How to register as self employed, step by step ### Step 1: Create or sign in to your Government Gateway account Go to the HMRC section of GOV.UK and search for "register for Self Assessment". If you already have a Government Gateway account, for example from claiming a tax refund or using your personal tax account, sign in with that. If not, you can create one as part of the process. ### Step 2: Choose to register as a sole trader HMRC will ask what you are registering for. Choose the option for being self employed or a sole trader. This registers you for Self Assessment and sets up your National Insurance as a self employed person at the same time. ### Step 3: Enter your personal and business details Fill in the details from the list above. Take care with your start date and description of work, as these are used to set up your record correctly. ### Step 4: Wait for your UTR Once your registration is processed, HMRC issues your Unique Taxpayer Reference, a ten digit number. It usually arrives by post, and you may also be able to see it in your HMRC online account or the HMRC app. Keep it safe, as you will need it every year. ### Step 5: Activate your online account HMRC will usually send an activation code so you can file your tax return online. Use it within the time limit stated on the letter, or you may have to request a new one. > **Already filed a tax return before?** If you have done Self Assessment in the past, for example as a landlord or for a previous business, you will already have a UTR. You do not register from scratch; you tell HMRC about your new self employment using your existing details. ## When do you need to register by? HMRC sets a deadline for registering, which falls after the end of the tax year in which you started trading. The safest approach is simply to register as soon as you start, or even just before. That way you are not racing a deadline, and you have your UTR in good time for your first return. Registering late can mean penalties, particularly if it leads to tax being paid late. HMRC's dates do not tend to move often, but you should always check the current deadlines on GOV.UK. Our upcoming guide to the Self Assessment deadline will cover the yearly timetable in more detail. ## What happens after you register? Once you are registered, a few things become your responsibility: - **Keep good records.** Track every sale and every business expense from day one. Our guide to [the records HMRC expects you to keep](/blog/what-records-does-hmrc-expect-you-to-keep-for-your-business) explains exactly what to hold on to. - **Claim your expenses.** Allowable costs reduce your taxable profit, so it pays to know what counts. See our simple guide to [what expenses a sole trader can claim](/blog/what-expenses-can-a-sole-trader-claim). - **File your Self Assessment return.** Each year you report your income and expenses to HMRC and pay any income tax and National Insurance due. Depending on your income, you may also need to keep digital records and send regular updates under Making Tax Digital. - **Set money aside for tax.** Tax is paid after the end of the year, and you may also have to make payments on account in advance. Putting a percentage of every payment aside avoids an unwelcome bill. - **Watch for VAT.** If your turnover passes the VAT registration threshold, you will need to register for [VAT](/service-categories/vat-services) separately. The threshold is set by the government and can change. > **Working in construction?** If you are a subcontractor in the building trades, you will usually also need to register for the Construction Industry Scheme (CIS). This is separate to Self Assessment and affects how much tax is taken from your payments. Our [construction and CIS team](/service-categories/construction-and-cis) can help you get it set up properly. ## Common mistakes to avoid - **Waiting until the return is due.** Leaving registration too late is one of the most common reasons people end up with penalties. - **Mixing business and personal money.** You do not legally need a separate bank account as a sole trader, but having one makes record keeping far easier. - **Not saving for tax.** Your first tax bill can be larger than expected, especially if payments on account kick in at the same time. - **Guessing at expenses.** Claiming things that do not qualify, or missing things that do, both cost you in different ways. ## Frequently asked questions ### How do I register as self employed? You register with HMRC for Self Assessment, usually online through GOV.UK using a Government Gateway account. You give your personal details, National Insurance number, start date and a description of your business. HMRC then sends you a Unique Taxpayer Reference so you can file your tax return. ### Does it cost anything to register as self employed? No. Registering as self employed with HMRC is free. Be wary of websites that charge you to do it on your behalf without offering any real advice. ### How long does it take to get a UTR number? It usually takes a couple of weeks for HMRC to send your UTR by post, although it can take longer at busy times. You may also be able to see it sooner in your HMRC online account or the HMRC app. ### Can I be employed and self employed at the same time? Yes. Many people have a job and run a business on the side. Your employer still deducts tax through PAYE, and you report your self employed income separately through Self Assessment. ### What happens if I register late? If you register late and it means your tax return or tax payment is late, HMRC can charge penalties and interest. If you think you may have missed the deadline, register as soon as possible and speak to an accountant about putting it right. ### Do I need to register if I am setting up a limited company? No, not as a sole trader. A limited company is registered with Companies House, and the company deals with corporation tax. As a director you may still need to file a personal Self Assessment return, depending on how you are paid. ### Do I need an accountant to register as self employed? You can register yourself, and many people do. Where an accountant helps is in making sure you are set up correctly from the start, choosing the right structure, keeping on top of records and expenses, and avoiding surprises when your first tax bill arrives. ## Need help getting set up? Registering as self employed is the easy part. Getting your records, expenses and tax planning right from day one is what makes the difference over the years ahead. At HLS Accounting in Cardiff, we help new sole traders and start-ups across Cardiff, Bridgend, Newport, Barry, Pontypridd and the wider South Wales area get registered, get organised and get it right first time. Find out more about our [business start-up support](/service-categories/business-start-up-and-advisory) and [personal tax services](/service-categories/tax-services-personal), or simply [get in touch](/contact) for a friendly chat. [Book a free consultation](https://calendly.com/hlsaccounting/new-client-meeting) or call the HLS team in Cardiff on 02922 805941. 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