How To Register as a Sole Trader

The following steps are guidelines so please do your research to make sure you fully understand what you are doing and what will be required from you going forward (see Further Information below)

As a Sole Trader you work for yourself, make all the decisions and are classified as self-employed.

Sole Traders can employ people full time or hire freelancers or contractors

STEP 2

All you need is a business name (or your own name), NI number, home or business address and start date.

You will not be asked for any other forms of ID at this stage

This is your initial registration to receive your UTR reference before setting up your online account.

https://www.gov.uk/become-sole-trader/register-sole-trader

You will be reminded to complete your accounts and file your Self Assessment return at the end of each tax year.

Deadline for paper returns - 31st Oct and online returns - 31st Jan

If profits are less than £6,845 a year you do not have to pay NI but you can choose to pay voluntary contributions.

Class 2 NI rate for tax year 2025 to 2026 is currently £3.50 a week

Receive your UTR by post in 15 working days (21 days if abroad) and keep it in a safe place for future reference.

You can do everything onine, by post or by text - you do not need to use an app

Make sure you claim for everything that you are eligible to claim for including home office expenses.

Keep receipts, invoices and bank statements in order by month

Complete your accounts and file online as soon as possible so you don't have to do it in a rush at the last minute.

Late filing penalties of £100 are charged, even if no tax is owed

Use paper form SA1 to register for Self Assessment and Class 2 National Insurance and send by registered post.

SEND COMPLETED FORM TO: HM Revenue and Customs, BX9 1AN

Further Information