How do I become a sole trader?

What you need before you start

• A National Insurance number. You need this to register for Self Assessment.
• A business name, or you can trade under your own name.
• A way to keep records of your income and costs from day one.

You can start trading straight away. Registering is how you tell HM Revenue and Customs (HMRC) you are self-employed.

How to register as a sole trader

1. Choose your business name. It must not include "limited", "Ltd", "LLP" or "plc". It must not be offensive or too like another business's trade mark. Put your own name and your business name (if different) on invoices and letters.
2. Check if you need to register. You must register if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April). You may also register to prove you are self-employed, for example for Tax-Free Childcare, or to pay voluntary Class 2 National Insurance.
3. Register for Self Assessment. Use the online service on GOV.UK. Registering for Self Assessment is how you register as a sole trader.
4. Keep records. Record your sales, costs and receipts so you can fill in your tax return.
5. Check other taxes and rules. You may need to pay National Insurance and register for VAT. Some trades also need a licence, permit or insurance.

Time and cost

Registering is free on GOV.UK.

Deadline: if you started trading in the 2025/26 tax year, the deadline to tell HMRC was 5 October 2026. Registering late can mean a penalty.

For the 2026/27 tax year (started trading from 6 April 2026), the deadline will be 5 October 2027.

After you register

HMRC sends you a Unique Taxpayer Reference (UTR). You need it to file your tax return.

You may also have to make payments on account. These are advance payments towards next year's bill, due on 31 January and 31 July.

VAT

You must register for VAT if your taxable turnover for the last 12 months goes over £90,000. You have 30 days from the end of the month you went over to register.

Making Tax Digital

From April 2026, some sole traders must keep digital records and send updates to HMRC every quarter. This depends on your qualifying income (from self-employment and property):

If you live in Scotland, Wales or Northern Ireland

You register with HMRC in the same way everywhere in the UK. If you live in Scotland, Scottish Income Tax rates apply to your profits.

Related guides

• When do I need to register for Self Assessment?
• What is employment status and why does it matter?
• What is Class 2 National Insurance?
• What is the trading allowance?
• When do I need to register for VAT?

Where this comes from

• Set up as a sole trader
• Register as a sole trader
• Choose your business name
• Register for Self Assessment if you're self-employed
• Self Assessment tax returns: deadlines
• Register for VAT
• Check if you're eligible for Making Tax Digital for Income Tax