How Do I Register as Self Employed with HMRC

If you earn money independently rather than through an employer, you may need to register as self employed with HMRC. This is a key step to ensure you pay the correct tax and National Insurance contributions. Whether you are starting a small business, freelancing, or running a side hustle, registering as self employed is simple and can be done online. This article explains when you need to register, how the process works, and what happens once your registration is complete.

Who needs to register as self employed

You must register as self employed if you run your own business as an individual and are responsible for its success or failure. This includes:

  • Freelancers, consultants, and contractors.

  • Sole traders providing goods or services.

  • Small business owners who are not operating as limited companies.

  • People earning additional income from side work, such as online sales or part-time trades.

You are considered self employed if you:

  • Control when, where, and how you work.

  • Provide your own tools or equipment.

  • Keep the profits from your work after covering expenses.

Even if your earnings are small, you still need to register with HMRC if your self employed income exceeds £1,000 in a tax year.

When you need to register

You must register with HMRC by 5 October following the end of the tax year in which you started trading.

For example, if you started working for yourself in July 2024, you must register by 5 October 2025.

Registering late can result in penalties, so it is best to register as soon as you begin trading.

What you need before registering

Before you register, make sure you have the following details ready:

  • Your National Insurance number.

  • Your personal details, such as name, address, and date of birth.

  • A description of your business activity.

  • The date you started trading.

  • An email address and phone number.

If you have previously submitted a Self Assessment tax return, you may already have a Unique Taxpayer Reference (UTR), which you will need when registering.

How to register as self employed online

The easiest way to register is through the HMRC website. You will need to create or log in to your Government Gateway account.

Step 1: Create a Government Gateway account

If you do not already have one, go to the HMRC website and set up a Government Gateway account. This allows you to access HMRC’s online services securely.

Step 2: Register for Self Assessment and Class 2 National Insurance

Once logged in, choose Register for Self Assessment and follow the instructions for self employed individuals. HMRC will ask for details about your business and when you started working for yourself.

When the registration is complete, HMRC will:

  • Send you a Unique Taxpayer Reference (UTR) by post.

  • Automatically register you to pay Class 2 National Insurance contributions.

Step 3: Wait for confirmation

You will usually receive your UTR within 10 working days (or up to 21 days if you live abroad). Keep it safe, as you will need it every time you submit a tax return or contact HMRC.

Once your registration is complete, HMRC will expect you to file an annual Self Assessment tax return.

What happens after you register

After you register as self employed, you are responsible for managing your own tax affairs. This means you must:

  • File a Self Assessment tax return each year.

  • Pay Income Tax on your profits.

  • Pay Class 2 and Class 4 National Insurance contributions.

  • Keep accurate records of your income and expenses.

The tax year runs from 6 April to 5 April, and your tax return must be submitted by 31 January the following year if filed online.

You can file your tax return as soon as the tax year ends, giving you plenty of time to calculate what you owe.

Keeping records and receipts

As a self employed person, you must keep records to support your income and expenses. HMRC may ask to see these if they review your return.

You should keep:

  • Invoices issued to clients.

  • Receipts for business expenses.

  • Bank statements and transaction records.

  • Mileage logs if you use your vehicle for work.

Most people store their records digitally using accounting software or spreadsheets.

By April 2026, self employed individuals earning more than £50,000 will need to follow Making Tax Digital (MTD) rules, which require keeping digital records and submitting quarterly updates through approved software.

Paying your tax and National Insurance

After filing your Self Assessment return, HMRC will tell you how much tax and National Insurance you owe. Payments are made directly through your online HMRC account.

You usually make two payments on account each year (in January and July) towards your next tax bill.

If your first year’s tax bill is large, HMRC may ask for an advance payment for the following year to avoid falling behind.

Registering if you are in a partnership

If you are starting a business with one or more people, you will need to register as a partnership rather than as an individual sole trader.

In this case:

  • The partnership itself must register with HMRC.

  • Each partner must register separately for Self Assessment.

The partnership submits a joint tax return, and each partner pays tax on their share of the profits.

What if you are self employed and employed at the same time

Many people are both employed and self employed, for example, working a job during the day and freelancing on the side.

If you have a job and already pay tax through PAYE, you still need to register for Self Assessment for your self employed income. HMRC will calculate your total tax liability across both income sources.

You may also be able to claim expenses related to your self employed work, reducing your overall tax bill.

How an accountant can help

While it is possible to manage your own registration and tax returns, hiring an accountant can make the process easier. An accountant can:

  • Register you with HMRC and set up your tax accounts.

  • Keep your financial records organised.

  • Prepare and submit your Self Assessment on time.

  • Help you claim all allowable expenses and tax reliefs.

  • Advise you on tax-efficient ways to grow your business.

This ensures you remain compliant and avoid penalties while maximising your earnings.

Final thoughts

Registering as self employed with HMRC is a straightforward process, but it is important to do it correctly and on time. Once registered, you take on responsibility for filing tax returns, paying tax, and keeping accurate records.

By registering early, staying organised, and seeking advice from an accountant if needed, you can manage your self employment with confidence and avoid unexpected tax surprises.