How to register as a sole trader with HMRC

To operate as a sole trader, you must register for Self Assessment with HM Revenue & Customs (HMRC). This is a crucial legal step that makes you responsible for paying your own Income Tax and National Insurance. The deadline to register is the 5th of October after the end of the tax year in which you started your business.

Why do I need to register?

Registering as a sole trader officially informs HMRC that you are self-employed. Once registered, you will be responsible for sending a Self Assessment tax return to HMRC each year. This is how you declare your business income and expenses, allowing HMRC to calculate the amount of Income Tax and National Insurance you need to pay.

When exactly do I need to register by?

The deadline can be a little confusing, but it’s straightforward once you understand the tax year, which runs from 6th April to 5th April. You must register by 5th October in your business's second tax year.

For example, if you start your tutoring business in July 2024, you are in the 2024/25 tax year. You would need to register with HMRC by 5th October 2025.

Don't leave it until the last minute! Registering early means you’ll get your necessary details in good time and avoid any potential fines for late registration.

How to register

The process is done online through the official GOV.UK website. It’s a simple, step-by-step process that you can do yourself.

1. Go to the GOV.UK website: Search for 'Register for Self Assessment' and make sure you are on the official government page.
2. Sign in or create an account: You will need a Government Gateway user ID and password. If you don’t have one (for example, from a previous tax return), you can create one as part of the process.
3. Gather your information: You will need some basic details to hand, including:
   • Your full name and home address
   • Your date of birth
   • Your National Insurance number
   • Your business start date
   • The name and nature of your business (e.g., "Private Tutor")
4. Complete the online form: Follow the on-screen instructions to fill in your details and submit your registration.

What happens next?

After you’ve registered, HMRC will send you two letters. The first will contain your 10-digit Unique Taxpayer Reference (UTR) number. The second will contain an activation code for your online account. Keep your UTR number safe – you will need it for all future correspondence with HMRC and for filing your tax return.