When should I register as a sole trader?

You must register as a sole trader by 5 October in your business second tax year. However, it is best to register as soon as you start trading. A tax year runs from 6 April to 5 April. For example, if you started trading in June 2024, you would need to register by 5 October 2025.

Is it free to register as a sole trader?

Yes. Registering as a sole trader with HMRC is completely free. There are no registration fees, no costs, and no ongoing charges. You only pay tax and National Insurance on your profits once you start earning.

Do I need a business bank account to register as a sole trader?

No, you do not need a business bank account to register as a sole trader. You can use your personal bank account. However, having a separate sole trader bank account makes it much easier to manage your business finances and prepare your Self Assessment tax return.

How long does it take to register as a sole trader?

The online registration process takes approximately 20 to 30 minutes. You will receive your UTR number by post within 10 working days, though it often arrives sooner. You can start trading immediately while waiting for your UTR.

What information do I need to register as a sole trader?

You need your National Insurance number, full name, date of birth, address, phone number, email address, the date you started or will start trading, a description of your business, and your business address (which can be your home address).

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

Sole trader registration at a glance:

Free to register

Takes 20 minutes

Self Assessment with HMRC

How to Register as a Sole Trader: Step-by-Step

Registering as a sole trader in the UK is a straightforward process. Follow these steps to register your sole trader business with HMRC.

Go to the GOV.UK Self Assessment Page

Visit the official GOV.UK website and search for "register for Self Assessment." Click the link to start your registration. The page is encrypted and secure. You will be asked to create a Government Gateway account if you do not already have one.

Create or Sign In to Your Government Gateway Account

If you already have a Government Gateway account, sign in with your user ID and password. If not, you can create one during the registration process. You will need your National Insurance number.

Complete Your Personal Details

Enter your full name, date of birth, home address, phone number, and email address. HMRC uses these details to identify you and send your UTR number and tax reminders.

Provide Your Business Information

Enter the date you started or plan to start trading, a description of what your business does, and your business address (this can be the same as your home address). Select "sole trader" as your business structure.

Submit Your Registration

Review your information and submit. HMRC will process your registration and post your Unique Taxpayer Reference (UTR) number to your home address within 10 working days. You can start trading immediately.

What You Need to Register as a Sole Trader

Before you start your sole trader registration, make sure you have the following information ready:

National Insurance number - You will need this to create your Government Gateway account.
Personal details - Full name, date of birth, and current home address.
Contact information - Phone number and email address for HMRC correspondence.
Business start date - The date you started or will start trading as a sole trader.
Business description - A brief description of what your business does (e.g., "plumbing services," "freelance graphic design").
Business address - Your business address, which can be your home address if you do not have separate premises.

When to Register as a Sole Trader

You must register as a sole trader with HMRC by 5 October in your second tax year of trading. However, it is strongly recommended that you register as soon as you start trading so you do not forget.

The UK tax year runs from 6 April to 5 April. For example:

If you started trading on 1 September 2024 (in the 2024/25 tax year), you must register by 5 October 2025.
If you started trading on 1 January 2025 (in the 2024/25 tax year), you must register by 5 October 2025.
If you started trading on 1 May 2025 (in the 2025/26 tax year), you must register by 5 October 2026.

It is important to note that you can start trading as a sole trader before you receive your UTR number. The registration confirms your status with HMRC and enables you to submit tax returns.

After You Register as a Sole Trader

Once your sole trader registration is complete, here is what happens next:

Receive your UTR - HMRC will post your 10-digit Unique Taxpayer Reference to your home address within 10 working days.
Set up a business bank account - While not mandatory, a separate sole trader bank account helps keep your finances organised.
Keep records - Start tracking your income and expenses from day one. Good record-keeping makes tax filing much easier.
Submit your first tax return - Your first Self Assessment tax return is due by 31 January after the end of the tax year in which you started trading.
Consider business insurance - Depending on your trade, you may need public liability insurance or professional indemnity insurance.

Sole Trader vs Limited Company Registration

Registering as a sole trader is simpler and faster than setting up a limited company. A sole trader registration only involves HMRC, while a limited company must also register with Companies House, create shareholder agreements, and file annual accounts.

If you are unsure which structure is right for you, see our sole trader vs limited company comparison for a detailed breakdown of the pros and cons of each.

Frequently Asked Questions

You register as a sole trader by signing up for Self Assessment with HMRC on the GOV.UK website. The process takes about 20 minutes. You will need your National Insurance number, personal details, and business information. After registering, HMRC will send you a Unique Taxpayer Reference (UTR) number by post.

Registered as a Sole Trader and Need Funding?

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Helpful links

What is a sole trader?Sole trader vs limited company Sole trader bank account Sole trader loans Limited company loans Business loans

How to Register as a Sole Trader: Step-by-Step

Registering as a sole trader in the UK is a straightforward process. Follow these steps to register your sole trader business with HMRC.

Go to the GOV.UK Self Assessment Page

Create or Sign In to Your Government Gateway Account

If you already have a Government Gateway account, sign in with your user ID and password. If not, you can create one during the registration process. You will need your National Insurance number.

Complete Your Personal Details

Enter your full name, date of birth, home address, phone number, and email address. HMRC uses these details to identify you and send your UTR number and tax reminders.

Provide Your Business Information

Submit Your Registration

What You Need to Register as a Sole Trader

Before you start your sole trader registration, make sure you have the following information ready:

National Insurance number - You will need this to create your Government Gateway account.

Personal details - Full name, date of birth, and current home address.

Contact information - Phone number and email address for HMRC correspondence.

Business start date - The date you started or will start trading as a sole trader.

Business description - A brief description of what your business does (e.g., "plumbing services," "freelance graphic design").

Business address - Your business address, which can be your home address if you do not have separate premises.

When to Register as a Sole Trader

You must register as a sole trader with HMRC by 5 October in your second tax year of trading. However, it is strongly recommended that you register as soon as you start trading so you do not forget.

The UK tax year runs from 6 April to 5 April. For example:

If you started trading on 1 September 2024 (in the 2024/25 tax year), you must register by 5 October 2025.

If you started trading on 1 January 2025 (in the 2024/25 tax year), you must register by 5 October 2025.

If you started trading on 1 May 2025 (in the 2025/26 tax year), you must register by 5 October 2026.

It is important to note that you can start trading as a sole trader before you receive your UTR number. The registration confirms your status with HMRC and enables you to submit tax returns.

After You Register as a Sole Trader

Once your sole trader registration is complete, here is what happens next:

Receive your UTR - HMRC will post your 10-digit Unique Taxpayer Reference to your home address within 10 working days.

Set up a business bank account - While not mandatory, a separate sole trader bank account helps keep your finances organised.

Keep records - Start tracking your income and expenses from day one. Good record-keeping makes tax filing much easier.

Submit your first tax return - Your first Self Assessment tax return is due by 31 January after the end of the tax year in which you started trading.

Consider business insurance - Depending on your trade, you may need public liability insurance or professional indemnity insurance.

Sole Trader vs Limited Company Registration

If you are unsure which structure is right for you, see our sole trader vs limited company comparison for a detailed breakdown of the pros and cons of each.

Frequently Asked Questions

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

How to Register as a Sole Trader: Step-by-Step

Go to the GOV.UK Self Assessment Page

Create or Sign In to Your Government Gateway Account

Complete Your Personal Details

Provide Your Business Information

Submit Your Registration

What You Need to Register as a Sole Trader

When to Register as a Sole Trader

After You Register as a Sole Trader

Sole Trader vs Limited Company Registration

Frequently Asked Questions

How do I register as a sole trader in the UK?

When should I register as a sole trader?

Is it free to register as a sole trader?

Do I need a business bank account to register as a sole trader?

How long does it take to register as a sole trader?

What information do I need to register as a sole trader?

Registered as a Sole Trader and Need Funding?

Helpful links

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

How to Register as a Sole Trader: Step-by-Step

Go to the GOV.UK Self Assessment Page

Create or Sign In to Your Government Gateway Account

Complete Your Personal Details

Provide Your Business Information

Submit Your Registration

What You Need to Register as a Sole Trader

When to Register as a Sole Trader

After You Register as a Sole Trader

Sole Trader vs Limited Company Registration

Frequently Asked Questions

How do I register as a sole trader in the UK?

When should I register as a sole trader?

Is it free to register as a sole trader?

Do I need a business bank account to register as a sole trader?

How long does it take to register as a sole trader?

What information do I need to register as a sole trader?

Registered as a Sole Trader and Need Funding?

Helpful links