How to Register as Self-Employed in the UK – A Step-by-Step Guide

Starting a business or working for yourself in the UK is exciting, but it also comes with responsibilities. One of the first and most important steps is registering as self-employed with HMRC (Her Majesty's Revenue and Customs).

In this guide, we’ll walk you through the process and share helpful tips to avoid common mistakes — all explained simply.

✅ What is Self-Employment?

If you work for yourself and are not on an employer’s payroll, you're likely self-employed. Common examples include:

• Cleaners

• Taxi or delivery drivers

• Construction workers

• Hairdressers

• Freelancers

• Consultants

Self-employed people must report their own income and expenses to HMRC through a process called Self Assessment.

📌 Step-by-Step: How to Register as Self-Employed

Step 1: Check If You Need to Register

You must register if you:

• Earn more than £1,000 in a tax year (6 April – 5 April)

• Work as a sole trader or in a business partnership

Step 2: Create a Government Gateway Account

Go to gov.uk/log-in-register-HMRC-online-services and create your account. Save your Government Gateway ID and password somewhere safe.

Step 3: Register for Self Assessment

Once you log in, follow the steps to register as self-employed. HMRC will ask for:

• Your full name and address

• Date of birth

• National Insurance number

• Business type (e.g. sole trader)

• Start date of your business

Step 4: Receive Your UTR

HMRC will post your Unique Taxpayer Reference (UTR) to your address. This is your self-employed tax ID. You’ll need it to file tax returns and apply for financial support (like Universal Credit).

Step 5: Keep Good Records

From day one, keep track of:

• Income received (invoices, cash, bank transfers)

• Expenses (receipts, mileage, phone bills, etc.)

You’ll need this information when completing your tax return.

🚫 Common Mistakes to Avoid

• Waiting too long to register (you can be fined)

• Not saving your Government Gateway details

• Forgetting to record cash payments

• Mixing personal and business expenses

📝 Filing Your First Tax Return

Once registered, you must file a Self Assessment every year, even if you made little or no profit. The deadline is:

• 31 January (online filing) for the previous tax year

You’ll need to calculate your profit (income minus expenses) and pay tax and National Insurance.

👋 Need Help?

Registering as self-employed can feel overwhelming. At Habesha Tax & Support, we make the process simple. We help:

• Register you with HMRC

• Apply for UTR

• Prepare and file your first tax return

• Advise you on Universal Credit or grant eligibility

📞 Contact us today and let’s get your business started the right way.