— Article

How to Register as a Sole Trader in the UK (Step-by-Step)

28 January 2026·4 min readSole TraderHMRCGetting Started

If you've earned over £1,000 from self-employment in a tax year, HMRC needs to know. Here's how to register as a sole trader.

When to register

By 5 October in your second tax year of trading. Earlier is fine — many people register the day they invoice their first client.

What you'll need

  • National Insurance number
  • Government Gateway ID (create one if you don't have one)
  • Date you started trading
  • Business name (can be your own name)
  • Business address

The actual steps

  1. Visit gov.uk and search "register for Self-Assessment"
  2. Sign in to your Government Gateway account
  3. Choose "I'm self-employed (sole trader)"
  4. Fill in the questionnaire
  5. HMRC posts your UTR (Unique Tax Reference) within 10 working days

After registration

You'll need to file a Self-Assessment by 31 January of the following tax year. You'll also pay Class 2 and Class 4 National Insurance.

Tip: open a separate bank account for business income/expenses on day one. It makes everything 10x easier when you start your books.

Your first week as a sole trader

  • Set up a separate business bank account
  • Choose bookkeeping software (Ledgerly Pro starts at £9.99/mo)
  • Connect your bank via Open Banking
  • Save 20–25% of every payment in a "tax pot" account

Already trading? Start your Ledgerly Pro free trial and we'll prep your Self-Assessment summary automatically.

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