How to register as a sole trader
Registering as a sole trader means telling HMRC that you’re self-employed. It doesn’t mean setting up a company, and you don’t need to pay a company formation service to do it.
When do I need to register as a sole trader?
If your total gross trading income is more than £1,000 in a tax year, you’ll usually need to register for Self Assessment. “Gross” means before expenses, with all your trades added together.
If it’s £1,000 or less, the trading allowance often means you don’t need to report that income. There are exceptions, including some income from connected businesses or employers. You may also need to register to claim a loss, pay voluntary Class 2 NI or support certain benefit claims. Keep records even if the allowance gives you full relief. HMRC: trading allowance.
What about selling your own unwanted possessions? That isn’t usually trading. Buying or making things to sell for profit may be. Valuable personal possessions can raise separate Capital Gains Tax questions, so “not trading” doesn’t automatically mean every sale is tax-free. HMRC: working for yourself, tax on personal possessions.
What is the sole-trader registration deadline?
If you need to tell HMRC, the usual deadline is 5 October after the end of the relevant tax year. So if you start in August 2026 and need to register for 2026/27, that means 5 October 2027. The usual deadline for filing your return online and paying for that year is 31 January 2028. HMRC: register as a sole trader, Self Assessment deadlines.
You don’t have to wait until October. Registering earlier gives you time to sort out any account or identity questions.
Follow the official registration route
Have these ready:
your National Insurance number
your contact details
your business start date
your trading name, if you use one
a description of your work
Use HMRC’s registration service and follow the sign-in and identity instructions it gives you. The route can be different if you’ve filed returns before or already have a Unique Taxpayer Reference, known as a UTR. If you already use Self Assessment for another reason, you still need to register your self-employment with HMRC. Use the HMRC route for your situation, rather than trying to get a second UTR. HMRC: registration routes.
You can trade under your own name. If you choose a business name, check the naming rules and trade marks. As a sole trader, you can’t suggest that you’re a limited company. GOV.UK: sole-trader names.
Then build a simple routine
Keep records from the start. Keep business transactions separate so they’re easy to spot, and check that your bank account’s terms allow business use. Review your tax reserve, the money you put aside for tax, regularly. Keep track of your VAT turnover, and check when Making Tax Digital applies to you. Good records also make life easier later, for example if you apply for a mortgage as a sole trader.
The aim is to make your next step easy to find, with your records, your reference number and your deadlines all in one place.
