How to Register as Self-Employed as a Tradesperson

ByTradeStack HQ

Going self-employed as a tradesperson is one of the most rewarding decisions you can make – but before you take on your first job, you need to make sure you’re properly registered with HMRC. It’s simpler than most people think, and getting it right from the start saves a lot of hassle further down the line. This guide walks you through exactly what to do, what you need, and what happens next.

Do You Need to Register as Self-Employed?

Yes – if you’re working for yourself as a tradesperson, whether full-time or alongside employed work, you must register as self-employed with HMRC. This applies if you:

  • Are starting your own trade business as a sole trader
  • Are taking on private work alongside an employed position
  • Are operating as a subcontractor for other businesses
  • Earn more than £1,000 from self-employment in a tax year

You must register by 5th October in the second tax year after you start trading. So if you start trading in the 2025/26 tax year, you must register by 5th October 2026. But there’s no reason to wait – register as soon as you start trading to make sure everything is set up correctly from the beginning.

What You’ll Need Before You Start

  • Your National Insurance number
  • Your personal details – full name, date of birth, address
  • Your business name if you’re trading under one (e.g., “Smith Electrical Services”)
  • The date you started or plan to start trading
  • A phone number and email address

That’s genuinely all you need. The registration process is straightforward and takes around 10–15 minutes online.

How to Register as Self-Employed: Step by Step

Step 1 – Create a Government Gateway account: Go to gov.uk and search for “register as self-employed”. You’ll need to create a Government Gateway account if you don’t already have one, verifying your identity with documents like your passport, driving licence, or a recent payslip. Make a note of your Government Gateway user ID – you’ll need it every time you log in to HMRC services.
Step 2 – Register for Self Assessment: Once you have your Government Gateway account, log in and select “Register for Self Assessment”. Select the sole trader option and complete the form: your personal details, National Insurance number, nature of your business (e.g., “Electrical contractor” or “Plumbing and heating engineer”), business address, and the date your self-employment started.
Step 3 – Receive your UTR number: After submitting your registration, HMRC will send your Unique Taxpayer Reference (UTR) – a 10-digit number that identifies you for tax purposes – to your registered address. This typically arrives within 10 working days. Keep it safe; you’ll need it every time you file a tax return or contact HMRC about your Self Assessment.
Step 4 – Activate your online tax account: Once you receive your UTR, log back in to your Government Gateway account and activate your Self Assessment online account. HMRC will send an activation code by post – enter this when prompted to complete the setup.

What Happens After You Register

Keep records of all income and expenses from the day you start trading. This is a legal requirement – HMRC can ask to see your records going back up to five years. Accounting software makes this effortless.

Complete a Self Assessment tax return each year. Your tax return covers the previous tax year (6th April to 5th April). The deadline to file online and pay any tax owed is 31st January each year. Missing this deadline results in automatic fines starting at £100.

Pay Income Tax and National Insurance. As a self-employed tradesperson you pay income tax on profits above the personal allowance (£12,570 for 2025/26), plus Class 2 and Class 4 National Insurance contributions. These are calculated when you complete your Self Assessment return.

Register for VAT if your turnover exceeds the threshold. Once your taxable turnover exceeds £90,000 in a rolling 12-month period, you must register for VAT. Below that threshold, registration is optional. Speak to an accountant about whether voluntary VAT registration makes sense for your business.

What About the Construction Industry Scheme (CIS)?

If you work as a subcontractor in the construction industry, you need to be registered for CIS. Under CIS, contractors deduct money from your payments – 20% if you’re registered, 30% if you’re not – and pass it directly to HMRC as advance payment towards your tax and National Insurance. To register for CIS:

  • Register as self-employed first as described above
  • Then register for CIS as a subcontractor through your Government Gateway account or by calling the CIS helpline on 0300 200 3210
  • Give your UTR number to contractors when you start working for them

CIS deductions are not additional tax – they’re advance payments offset against your final tax bill. If your deductions exceed your actual tax liability, you’ll receive a refund. If you have a good compliance record with HMRC, you may be able to apply for gross payment status, meaning contractors pay you in full without deducting tax.

Setting Up Your Finances Properly From Day One

  • Open a dedicated business bank account – keep business and personal money completely separate. Starling Bank offers a free business account that’s excellent for sole traders
  • Start using accounting software immediately – Xero or QuickBooks connects to your bank account, categorises transactions automatically, and prepares your figures for Self Assessment throughout the year
  • Set aside 25–30% for tax – transfer this to a separate savings account the moment a payment hits. The first Self Assessment bill is the biggest shock for new sole traders; don’t let it catch you out

Common Mistakes New Self-Employed Tradespeople Make

  • Registering late – HMRC charges penalties for late registration. Register as soon as you start trading
  • Not keeping records – without records you can’t claim allowable expenses, meaning you pay more tax than you need to
  • Mixing business and personal finances – running your business through your personal bank account makes it almost impossible to track what you’ve earned and spent
  • Not claiming all allowable expenses – most new self-employed tradespeople underclaim, paying more tax than they need to

Job Management From Day One

Once you’re registered and your finances are in order, the next priority is managing your jobs professionally. Tradify lets you create and send professional quotes, manage jobs and scheduling, generate invoices, and chase payments – all from your phone. For a new tradesperson who wants to look professional from day one without spending hours on admin, it’s the obvious starting point.

Try Tradify Free – No Card Required

The Bottom Line

Registering as self-employed is simpler than most people expect – it takes around 15 minutes online and costs nothing. The important thing is to do it promptly, get your finances set up properly from the start, and build good habits around record-keeping and tax saving from your very first job. Get the admin right from day one and you’ll be able to focus on what you actually went self-employed to do – the trade work itself.

Frequently Asked Questions

How do I register as self-employed in the UK?

Register online via gov.uk. You’ll need to create a Government Gateway account, then register for Self Assessment as a sole trader. You’ll need your National Insurance number, personal details, business name, and the date you started trading. The process takes around 10–15 minutes. HMRC will then send your Unique Taxpayer Reference (UTR) by post within 10 working days, which you’ll need to activate your online Self Assessment account.

When do I need to register as self-employed?

You must register by 5th October in the second tax year after you start trading – so if you start trading in the 2025/26 tax year, the deadline is 5th October 2026. However, there’s no benefit to waiting. Register as soon as you start trading to make sure your UTR arrives in good time and your tax affairs are set up correctly from the start. HMRC charges penalties for late registration, and the process takes time – your UTR alone takes up to 10 working days to arrive.

What is a UTR number and why do I need it?

A UTR (Unique Taxpayer Reference) is a 10-digit number HMRC assigns to you when you register for Self Assessment. It uniquely identifies you in the HMRC system and is required every time you file a tax return, contact HMRC about your Self Assessment, or register for the Construction Industry Scheme as a subcontractor. You’ll also need to give your UTR to contractors when working under CIS so they can make deductions at the correct rate. Keep it safe – it doesn’t change.

What taxes do I pay as a self-employed tradesperson?

As a self-employed sole trader you pay Income Tax on profits above the personal allowance (£12,570 for 2025/26), Class 4 National Insurance on profits between £12,570 and £50,270 (9%), and a reduced rate above £50,270 (2%). Class 2 NI was effectively abolished for most self-employed people from April 2024. If your taxable turnover exceeds £90,000 in a rolling 12-month period, you must also register for VAT. All of these are calculated and paid through your Self Assessment tax return, due 31 January each year.

What is CIS and do I need to register for it?

CIS (Construction Industry Scheme) is a tax deduction scheme for the construction industry. If you work as a subcontractor for other contractors (not directly for homeowners), you need to register. Under CIS, contractors deduct 20% from your payments if you’re registered (30% if you’re not) and pass it to HMRC as advance tax payments. These deductions are offset against your final tax bill – they’re not additional tax. Register for CIS through your Government Gateway account or by calling 0300 200 3210.

What records do I need to keep as a self-employed tradesperson?

HMRC requires you to keep records of all income (invoices, bank statements showing payments received) and all business expenses (receipts, fuel costs, tool purchases, insurance, van costs, phone bills) for at least five years after the Self Assessment filing deadline for the relevant tax year. This means keeping records for up to six years in practice. Accounting software like Xero or FreeAgent makes this straightforward – photograph receipts on your phone as they happen and they’re stored digitally with the correct date and category automatically.

TradeStack HQ helps UK tradespeople find the best tools to run smarter businesses. Some links on this page are affiliate links; we may earn a commission if you sign up, at no extra cost to you.

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