When Do I Need To Register As Self Employed
Started a side hustle? Earning a bit extra on the side or considering self-employment in the UK? One common question you might face is: when do I need to register as self employed sole trader? Don't worry; we've got you covered.

Becoming self-employed in the UK is a big step, and it can sometimes feel like navigating a maze. Whether you're earning rental income, operating a business, or starting a freelance gig, there are specific rules to follow. By the time you finish reading this article, you'll know exactly when it's time to register as self employed, ensuring you stay on the right side of the tax authorities.
Why Do You Need to Register as Self Employed Sole Trader?
It’s very important to register as self employed sole trader after you start running your own business. This is so HMRC knows how much you’re earning and can therefore, charge you the appropriate amount of tax.
To register as self employed with HMRC in the UK, you must meet the following criteria:
- You earn more than £1,000 in a tax year (6 April to 5 April)
- You are not paid through Pay as You Earn (PAYE) and do not have employee rights
- You run the business yourself, or are a partner in an ordinary partnership
- You decide how and when you work, provide your own equipment, and have multiple customers
- You register with HMRC as soon as you start earning money from your business or freelance work
When Do I Need To Register As Self Employed UK?
Coming to your main question: when do I need to register as self employed?
The rule is simple: register as self employed UK as soon as you start working for yourself, even if it's just a small gig. It's not about the size of your venture; it's about doing your own thing.
But here's the catch – you should register before the 5th of October in your business's second tax year. For example, if you began your self-employment in July 2023, you'd need to register by October 5, 2024. Missing this deadline could lead to penalties, and nobody wants that.
What is Self-Assessment?
Once you register, you will be filing your self-assessment income tax returns every year. This is the method through which you can report how much you receive in income and spend. It is really very important to maintain records of your earnings and expenditures throughout the year because this will be needed when you make your tax return.
With the guidance of Taxd, you can make sure that your numbers are accurate and there is no claim of under deduction.
What Are the Self-Assessment Deadlines?
You file tax returns for tax years, not calendar years. And you do this every year. So for the 2024/25 tax year running from 6 April 2024 to 5 April 2025-you would:
- Need to register for self-assessment by 5 October 2025 if you've never filed a return before
- Submit your return by midnight 31 October 2025 if submitting a paper tax return
- For online submissions, you submit your return by midnight of 31 January 2026
- Pay any tax due on or before midnight of 31 January 2026.
If you do not comply with any of the above conditions, then you may have to pay a late penalty and an interest on late payment.
How To Register As Self Employed UK?
Now, let’s find out how to do register as self employed UK:
Go to the HMRC Website:
The first stop is the HMRC (His Majesty's Revenue and Customs) website, it's like your online guide for all things tax-related in the UK.
Find the Self-Employed Registration Page:
On the website, search for the "Register for Self-Assessment" page. This is where you officially let the tax folks know you're starting your self-employed adventure.
Sign in to Your Business Tax Account:
To register, sign in to your business tax account and choose 'Add a tax to your account' for online access. If you don't have sign-in details, you can create them when signing in for the first time.
Once you sign in, just fill out the self-employed registration form.
Receive Your Unique Tax Reference (UTR) Number:
After you've submitted your form, you'll get your UTR number. Think of it as your tax ID. You'll use this number whenever you deal with tax matters, so keep it safe.
Complete Your Self-Assessment with Taxd:
Once you're registered, you'll need to complete self-assessment tax returns every year. First, you need to create an account by answering a few questions here if you're a new user. Otherwise, you can simply log in to your account if you already have one.
It will then take you to this page: https://assessment.taxd.co.uk/, where you will get a detailed questionnaire to file your self-assessment tax return.
Note: If you’re a landlord, you will need to fill an additional section called “Rentals (SA105).”
Section 1: Introduction
Input details like your job status and additional income source.
Section 2: Self-Employment
If you were self-employed during the tax year, you'll need to fill out this section. Prepare details of your income, expenses, and any supporting documents, such as invoices or receipts, for accurate reporting.
Section 3: Tax Return Filed
Once you are through all the sections, review the tax calculation and submit the return digitally to HMRC after verifying your identity.
Pay Your Tax:
When the time comes, you'll pay your tax. HMRC will let you know how much you owe.
And that's it – you're officially registered as self-employed in the UK.
Responsibilities of Being Self-Employed
Being self-employed in the UK brings its own set of responsibilities. While it offers flexibility and independence, it also means you're in charge of managing certain things. Here's a breakdown in simple terms:
Keeping Financial Records:
You'll need to keep track of your income and expenses to help you calculate your taxes accurately. Simple spreadsheets or even a notebook can do the job.
Paying National Insurance:
As a self-employed person, you'll be responsible for paying National Insurance contributions. It's a way to ensure you're covered for certain benefits like the state pension.
Budgeting for Taxes:
Unlike employees, you won't have taxes automatically deducted from your income. You need to set aside money to cover your tax bill when it's due.
Understanding Tax Deductions:
You can often deduct legitimate business expenses from your income to reduce your tax bill. This includes costs related to your work. While you can manage many aspects on your own, it's a good idea to consider professional advice. Taxd can help you navigate the complexities of self-employment.
Conclusion
In the world of self-employment, understanding your responsibilities is the first step to a successful journey. Navigating tax and financial matters without difficulty requires guidance that's clear, accessible, and uncomplicated. At Taxd, we specialise in assisting self-employed individuals in meeting their tax obligations while focusing on their passion and business.
FAQS
- What's the first step to register as self employed sole trader?
The first step is to register with HMRC.
2. How can I keep track of my income and expenses?
Use basic spreadsheets or a simple notebook to maintain income and expense records.
3. When is the deadline for filing self assessment tax returns?
The deadline is typically January 31st each year.
4. Can I deduct business-related expenses from my income?
Yes, legitimate expenses can reduce your tax bill.
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