How to register as a sole trader in the UK: steps, deadlines, tax

If you have started earning on your own — through freelancing, a trade, small-scale selling or services — sooner or later you must register with HMRC as a sole trader. Here is the income level at which it becomes compulsory, the deadline to register, the taxes and contributions a sole trader pays and the dates not to miss.

When must you register?

You must register for Self Assessment as a sole trader if your income from self-employment in a tax year (6 April to 5 April) is more than £1,000. This is the trading allowance: while your income is below £1,000, you do not have to register. You can start trading before you register — the law allows it; you just have to meet the deadline.

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By when must you register?

The deadline is 5 October after the end of the tax year in which you started. For example, if you started in 2025–26, you must register by 5 October 2026. Do not leave it: without registering you cannot file your return on time, and late registration can bring penalties.

What tax and contributions do you pay?

On your profits you pay Income Tax and National Insurance. Class 2 contributions are £3.65 a week, but if your profits are £7,105 a year or more they are treated as paid automatically — you do not pay them separately; below that you can pay voluntarily to protect your pension and other rights. Class 4 contributions are paid on profits: 6% on the slice from £12,570 to £50,270 and 2% on anything above £50,270.

Which dates must you not miss?

A paper return must reach HMRC by 31 October; an online return by 31 January of the following year, and the tax due must also be paid by that same 31 January. If you want a small tax bill collected through your tax code at work, you file earlier — by 30 December. Late filing and late payment attract penalties and interest, so it is best to put the dates in your calendar in advance.

What to keep and how to register

From your first day of trading, keep records of income and expenses — receipts, invoices, statements. You use them to fill in your return and work out the profit that is taxed. The tidier your records, the lower the risk of a mistake or overpaying. You register online with HMRC through a Government Gateway account, after which you are given a Unique Taxpayer Reference (UTR) — you will need it for every future return.