How to register as self employed for the first time?

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To register as self-employed, you must tell HMRC by registering for Self Assessment. The quickest way is online:

1. Create a Government Gateway user ID (if you don’t have one).
2. Log in and fill out the registration form for Self Assessment.
3. Wait for your Unique Taxpayer Reference (UTR) number to arrive by post (usually within 10 days).

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Step-by-Step Instructions

1. Check if you actually need to register

You generally need to register if you earned more than £1,000 from self-employment between 6 April and 5 April the following year. This £1,000 is your “trading allowance.” If you earned less than this, you usually do not need to register or pay tax on that income.

2. Get your details ready

Before you sit down at the computer, make sure you have these things in front of you:

• Your National Insurance (NI) number (you can find this on old payslips or your pension letters).
• Date of birth.
• Phone number and email address.
• Date you started your business (this can be an approximate date if you don’t have an exact one).
• Business address (this can be your home address).
• Business name (you can just use your own name).

3. Register online (The “Government Gateway”)

• Go to the GOV.UK website and search for “Register for Self Assessment”.
• Select the option that says “Register if you’re self-employed”.
• If you have never used HMRC online services before, choose “Create sign in details”. You will be given a User ID and asked to create a password. Write these down—you will need them every year to pay your taxes.
• Once logged in, follow the on-screen questions. It will ask about your business type (usually “Sole Trader”) and your personal details.

4. Wait for your UTR Number

After you submit the form, HMRC will post a letter to your home address. This letter contains your Unique Taxpayer Reference (UTR).

• This is a 10-digit number.
• Keep this letter safe. You cannot file your taxes without this number.
• It usually takes 10 to 14 days to arrive.

5. Receive your Activation Code

You might also receive a separate letter with an “activation code” to fully unlock your online account. You must log back in and enter this code within 28 days, or it will expire.

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Important Deadlines

You do not need to register immediately on your first day of work, but you must strictly follow these dates:

• Register by:5 October after the tax year you started business.
  • Example: If you started business in August 2025, you must register by 5 October 2026.
• File your tax return by: 31 January the following year.
• Pay your tax by: 31 January the following year.

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Why You Might Need an Accountant (Making Tax Digital)

Historically, you could easily file your own taxes once a year using the HMRC website. However, the rules are changing drastically due to a new system called Making Tax Digital (MTD).

What is changing? Starting from April 2026 (depending on your income), you will no longer be able to just fill in one form once a year.

• If you earn over £50,000, you must keep digital records and send HMRC updates every 3 months (quarterly), plus a final declaration at the end of the year.
• From April 2027, this applies if you earn over £30,000.
• From April 2028, this is expected to apply if you earn over £20,000.

Why use an accountant? Because of MTD, the tax system is becoming much more strict. You cannot just keep receipts in a shoebox anymore.

1. Software: You will be legally required to use special accounting software (like Xero or QuickBooks) that links to HMRC. An accountant can set this up for you.
2. Quarterly Deadlines: Instead of one deadline a year, you will have four. An accountant ensures you don’t miss these and get fined.
3. Accuracy: With more frequent reporting, mistakes are harder to fix later. An accountant ensures your digital records are correct before they are sent to HMRC.

While you are allowed to handle MTD yourself, the complexity means many self-employed people are now hiring accountants to handle the software and quarterly submissions for them.

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