Going self-employed in the UK: registering, your UTR and what you pay in 2026

Working for yourself in Britain is simpler than it looks: no office, no share capital, no accountant on day one. Three things are needed — the right to be self-employed on your visa, registration with HMRC, and the habit of keeping receipts. Here it is in order, with the exact figures and dates.

First things first: does your visa allow it

This is question one, and a mistake here costs status rather than money.

• Settled and pre-settled status, ILR, British citizenship, a family visa — self-employment without restriction.
• Graduate visa — allowed. The official guidance says it plainly: work in most jobs, look for work, and be self-employed. The visa runs two years if you apply on or before 31 December 2026, 18 months after that; three years for doctoral graduates.
• Skilled Worker — the common misconception. Your own business is allowed, but for up to 20 hours a week and only while the sponsored job continues. The additional work must be on the higher-skilled occupation list, on the immigration salary list, or in the same sector and at the same skill level as your main job. Admin such as preparing invoices counts inside those 20 hours. Beyond 20 hours you need to update the visa.
• Student visa — not allowed. The rules say it in as many words: you cannot be self-employed. Freelancing included.

If you are unsure about your category, check your visa's conditions before the first invoice, not after.

Registering: the £1,000 threshold and the 5 October deadline

You can start trading immediately, and not everyone has to register. The threshold is simple: earn more than £1,000 in a tax year (6 April to 5 April) and you must register for Self Assessment as a sole trader. Below that, the trading allowance covers you.

The deadline is strict and routinely missed: you must tell HMRC by 5 October in the year following the tax year you started in. Started during the year that ended on 5 April 2026? Register by 5 October 2026. Miss it and HMRC allows a three-month extension for the return itself — not something to plan around.

Registration produces a UTR, your ten-digit taxpayer reference. Without it you cannot file a return or register for the construction scheme.

The year ahead, by date

1. 5 October 2026 — tell HMRC if you need to file for the first time.
2. 31 October 2026, 11:59pm — deadline for a paper return.
3. 30 December 2026 — file by this date if you want the tax collected through your tax code.
4. 31 January 2027, 11:59pm — online return and payment.
5. 31 July — the second instalment if you make payments on account.

What you pay

Income tax at the usual rates, after the personal allowance.

National Insurance. Here is the change many people have missed: Class 2 is no longer compulsory. Contributions are treated as having been paid, your National Insurance record is protected, and you owe nothing. Below £7,105 of annual profit you can still pay Class 2 voluntarily at £3.65 a week to avoid gaps in your record.

Class 4 is charged on profit: 6% between £12,570 and £50,270, and 2% above £50,270. It is all settled in the same return.

For builders: CIS and the extra 10%

If you work on site as a subcontractor, the contractor must deduct part of your payment and pass it to HMRC as an advance on your tax and National Insurance. The rate depends on one thing only — whether you are registered:

• registered — 20%;
• not registered — 30%.

That 10% on every payment is money lost to one unfilled form. Over-deductions come back through the return, but you wait until the end of the tax year. Those who want no deductions at all can apply for gross payment status, which has to be earned through turnover and a clean payment history.

The scheme covers site preparation, demolition, building, alterations, repairs and installing systems. It does not cover architecture, hiring scaffolding without labour, or delivering materials.

The big 2026 change: quarterly digital reporting

Making Tax Digital for Income Tax started on 6 April 2026. If your turnover from self-employment and property — turnover before expenses — is above £50,000, one annual return is no longer enough: you must keep records in compatible software and send quarterly updates, then a final declaration after the year end.

The threshold then falls: above £30,000 from 6 April 2027, and above £20,000 planned from 6 April 2028. HMRC is not building its own tool; free products are expected on the market for simple affairs, with paid options for everyone else.

The practical point: if you are anywhere near the threshold, set up the software and the habit early. Switching mid-year in a hurry costs more.

What to do from day one

• A separate account. Not required by law, but mixing personal and business spending is the single biggest reason a tax return turns into an ordeal.
• Keep everything. Records are a legal requirement: they are how profit or loss is worked out. A photo of each receipt in a folder by month is enough to start.
• Set tax aside as you go. Move a share of every payment into a separate account rather than hunting for the whole sum on 31 January.
• Count your expenses. Tools, workwear, business travel, a share of household bills when you work from home — all of it reduces taxable profit, provided you kept the paperwork.