🧾 How to Register as a Sole Trader in the UK (2025 Guide)

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👋 Thinking of Going Freelance? Here’s How to Make It Official

If you’re starting out as a freelancer in the UK, becoming a sole trader is the simplest and most common legal structure. It’s low-cost, flexible, and perfect for self-employed professionals — from creatives and consultants to tutors and tradespeople.

Here’s a step-by-step guide on how to register as a sole trader, what to expect, and the tools to make running your business easier.

âś… Who Can Be a Sole Trader?

Almost anyone doing business on their own can register:

  • Freelancers and gig workers
  • Creatives (designers, writers, photographers)
  • Trades (plumbers, electricians, mobile hairdressers)
  • Side hustlers (dog walkers, online tutors)

If you’re making more than ÂŁ1,000/year in self-employed income, HMRC expects you to register.

🪪 Step 1: Register with HMRC

You’ll need to tell HMRC you’re self-employed so you can file a Self Assessment tax return.

Here’s how:

  1. Visit the official page: Register for Self Assessment
  2. Create a Government Gateway account
  3. Choose “Sole Trader” and complete your personal details
  4. You’ll get a Unique Taxpayer Reference (UTR) by post
  5. Activate your account when you receive your code

🔎 Tip: Register early — don’t wait until you’ve made thousands. You don’t have to pay tax right away, but you do need to be registered in time to file.

🏷️ Step 2: Choose a Business Name (Optional)

You can trade under your own name (e.g. “Jane Smith”) or use a business name (e.g. “Smith Creative”).

Rules:

  • Can’t include “Ltd”, “Limited”, “LLP”, or similar
  • Shouldn’t be the same as another business
  • Keep it clear, professional, and relevant

🧾 Step 3: Start Tracking Your Income & Expenses

As a sole trader, you’re legally responsible for tracking your business income and outgoings — and reporting them to HMRC each year.

You don’t need to register for VAT unless your turnover exceeds ÂŁ90,000 (as of 2025), but you do need to keep clear records.

📌 Get started: Use beginner-friendly accounting software for UK sole traders to save time and avoid errors.

đź’ł Step 4: Open a Business Bank Account

This isn’t legally required, but separating your business finances from your personal account is a smart move.

  • Helps with bookkeeping and taxes
  • Looks professional to clients
  • Keeps your records audit-ready

👉 Compare options: Best business bank accounts for UK freelancers

🛡️ Step 5: Get Business Insurance (If Needed)

Some professions — like tutors, pet services, or trades — need public liability or professional indemnity insurance.

Check if it’s required by your clients, venue, or service type. Even if not required, it’s worth having protection in place.

👉 Read: Do UK tutors need business insurance?

🧰 Bonus: Use a Freelancer Toolkit

There are tools that make being self-employed easier — from invoicing and time tracking to CRM and contracts.

Explore the Freelancer Toolkit to see what’s available — many are free or pay-as-you-grow.

đź“… Key Deadlines

  • Register as self-employed: by 5 October after the tax year you started
  • Submit Self Assessment tax return: by 31 January
  • Pay your tax bill: by 31 January (same day)

âś… Final Thoughts

Registering as a sole trader in the UK is quick and free — but doing it properly sets the tone for everything that follows. From day one, having a system in place for money, taxes, and tools will help you feel more in control and more confident as your business grows.

Take 30 minutes to register now — and a huge step toward building your own thing.