How to Register as Self-Employed?

PHS Team

30 Oct, 2025

If you want to work for yourself, it is important to know how to register as self-employed. You need to tell HM Revenue and Customs (HMRC) so they know you are working on your own. This lets you pay the right tax. The process is easy, and you must do it by 5th October after the year you start working.

To register, first create an account on the Government Gateway website. Then fill in your business details like your name, address, and what type of work you do. After this, HMRC will send you a Unique Taxpayer Reference (UTR) number. This easy step means you can start running your business properly and follow the law without any problems.

What Does Self-Employed Mean?

Being self-employed means you run your own business or work for yourself without being an employee. You decide how and when to work, and you deal directly with clients or customers. Unlike working for an employer, you take care of your own taxes and business responsibilities.

Who Needs to Register as Self-Employed?

You must register as self-employed with HM Revenue and Customs (HMRC) if:

• You run your own business as a sole trader.
• You earn more than £1,000 a year from self-employment (known as the trading allowance).
• You want to claim allowable business expenses.
• You work independently as a freelancer, contractor, or gig worker.
• You are part of a partnership running a business.

Even if you have a full-time job, you still need to register if you do self-employed work on the side and earn above the threshold. This includes selling goods, freelancing, or offering services like tutoring or trading online.

How to Set Up as Self-Employed

Registering as self-employed is simple and quick. Follow these steps to complete your registration:

1. Create a Government Gateway Account

Go to the official HMRC website and create a Government Gateway account. This account lets you use HMRC’s online services to manage your taxes and business details. 

You will need your email, National Insurance number, and some proof of identity like a UK passport or a recent payslip.

2. Register for Self Assessment

Once your Government Gateway account is ready, log in and register for Self Assessment as self-employed by providing the following details:

• Your full name and home address
• Your National Insurance number
• The type of work or business you do
• The date you started working for yourself (important for tax deadlines)

Make sure all information is accurate to avoid delays or issues with your tax registration.

3. Submit Your Registration

After filling in the details, send the form to HMRC. They will check your information and send you a letter with your Unique Taxpayer Reference (UTR) number.

4. Keep Good Business Records

Keeping clear records of your business money helps you complete your tax return accurately and may reduce how much tax you pay.

• Save all receipts and invoices for things you buy and sell.
• Keep bank statements showing money going in and out of your business.
• Record all the money you earn and spend for your business.
• Keep track of any business expenses to claim tax relief.
• Organise your records so they are easy to find when needed.

Good records make tax time easier and help avoid problems with HMRC.

Important Deadlines and Tips

When you start working for yourself, it’s important to know the key deadlines for registering and managing your taxes. 

Registering on time helps you avoid fines and stay organised with your tax responsibilities. Here are the main deadlines and tips to keep in mind:

• You must register as self-employed by 5th October, following the end of the tax year when you started working.
• For example, if you started your business in April 2025, you have until 5th October 2026 to register.
• It is best to register as soon as possible to avoid penalties for late registration.
• After registering, you will need to file a Self Assessment tax return every year to report your income and pay any tax due.

Benefits of Registering as Self-Employed

When you register as self-employed with HMRC, you get several important benefits:

• You can pay the right amount of tax and National Insurance contributions on your earnings.
• You can claim business expenses, which helps lower your tax bill by deducting costs like office supplies, travel, or equipment.
• Registering allows you to access government support and benefits designed for self-employed workers, such as certain allowances and schemes that can help you financially.
• You can build your National Insurance record, which helps you qualify for the State Pension and other benefits.
• You gain credibility as a legitimate business, making it easier to work with clients and suppliers.
• Being officially registered protects you from penalties and fines for not declaring income or taxes.

By registering officially, you make sure your business is legal and you can manage your finances properly. This also helps you avoid fines and stay up to date with your tax responsibilities, giving you peace of mind as you grow your business.

Taxes You Need to Pay After Registering as Self-Employed

When you register as self-employed, you’ll be responsible for paying certain taxes to HMRC. Understanding these taxes is important to keep your business legal and avoid penalties.

Income Tax and Self Assessment

As a self-employed person, you must complete a Self Assessment tax return every year. This form reports your business income and expenses. HMRC uses this information to work out how much income tax you owe based on your profits. 

National Insurance Contributions (NICs)

If your profits are over £12,570, you pay Class 4 National Insurance through your tax return. If your profits are below £6,845, you can pay voluntary Class 2 contributions to help build your state pension.

Value Added Tax (VAT)

If your business’s taxable turnover (sales) goes above £90,000 in any 12 months, you must register for VAT. This means charging VAT on sales, paying VAT to HMRC every quarter, and regularly filing VAT returns.

Conclusion

Registering as self-employed is an important step to run your own business legally and manage your tax responsibilities. While the process is simple, it can sometimes feel overwhelming to handle it all alone.

Our expert team offers clear guidance and support on every part of your self-employment setup from registering with HMRC and understanding important deadlines to managing your tax returns and National Insurance contributions. 

How PHS Associates can help you.

For expert assistance to your individual needs, contact PHS Associates at 0208 8611685 or email us at info@phs-uk.co.uk. Our team is dedicated to helping you focus on growing your business while we manage all your paperwork and regulatory requirements.

Starting your self-employment journey is exciting, and with PHS Associates by your side, you can be confident that your registration, tax responsibilities, and legal obligations will be handled efficiently and accurately.

Frequently Asked Questions