To register as a sole trader in the UK, you must register for Self Assessment with HMRC by 5 October in the tax year after you started trading. If you started in 2024/25, you must register by 5 October 2025. Registration is free and can be done online in around 20 minutes.
Register by 5 October following your first year of trading. Go to GOV.UK and register for Self Assessment. HMRC will send your Unique Taxpayer Reference (UTR) by post within 10 days. You will then be able to file your first tax return.
Who needs to register as a sole trader?
You must register as a sole trader and complete a Self Assessment tax return if any of the following apply to you:
- You earned more than £1,000 from self-employment in the tax year (the trading allowance threshold)
- You want to pay voluntary National Insurance contributions to protect your State Pension entitlement
- You received a letter from HMRC asking you to register
- You claimed Child Benefit and your or your partner's income exceeded £50,000 (the High Income Child Benefit Charge)
Even if your self-employment income is below £1,000, you may still choose to register to keep your National Insurance record intact.
How to register: step by step
When is the registration deadline?
You must register by 5 October in the second tax year of trading. For example:
| You started trading in | Registration deadline |
|---|---|
| Any time in 2023/24 (before 5 April 2024) | 5 October 2024 |
| Any time in 2024/25 (before 5 April 2025) | 5 October 2025 |
| Any time in 2025/26 (before 5 April 2026) | 5 October 2026 |
Missing the 5 October deadline can result in a penalty. HMRC can charge up to 30% of the unpaid tax if failure to notify is deliberate. Register as soon as you start trading to avoid this risk.
What information do you need to register?
- Your full name and date of birth
- Your National Insurance number
- Your home address and phone number
- Your email address
- The name of your business (if you trade under a business name)
- The date you started self-employment
- The nature of your business (a brief description)
You do not need to register your business name with Companies House as a sole trader. Only limited companies have this requirement.
Can you use a business name as a sole trader?
Yes. As a sole trader, you can trade under any name as long as it does not imply you are a limited company (for example, by including "Ltd" or "Limited"). Your business name cannot be offensive or identical to a registered trademark.
If you do trade under a business name, you must still display your own name on official documents such as invoices, letters, and your website.
What happens after you register?
Once registered, you will need to:
- Keep records of all your income and expenses throughout the year
- File a Self Assessment tax return each year by 31 January (online) or 31 October (paper)
- Pay Income Tax on your profits and Class 4 National Insurance
- Consider whether you are eligible for the trading allowance or cash basis accounting
Sole trader vs limited company: which should you choose?
Most people starting out should begin as a sole trader. It is simpler, cheaper to run, and requires less administration. As your income grows, it may make financial sense to incorporate. See our full guide to sole trader vs limited company for a detailed comparison.
This guide provides general information only. It does not constitute tax or legal advice. For your specific situation, consult a qualified accountant or tax adviser. You can find an accountant through our directory.