Register as a sole trader

You must register as a sole trader if:

  • you earn more than £1,000 in a tax year (from 6 April to 5 April)
  • you need to prove you’re self-employed, for example to claim Tax-Free Childcare
  • you want to make voluntary Class 2 National Insurance payments to help you qualify for benefits and State Pension

If you register late, or if you do not register you may get a penalty.

This guide is also available in Welsh (Cymraeg).

How to register

Register as a sole trader by registering for Self Assessment.

If you have registered for Self Assessment for another reason, you will need to register again.

Check how to register for Self Assessment as a sole trader.

Before you start

You’ll need a National Insurance number to register for Self Assessment. You can apply for a National Insurance number if you do not have one.

Read more about what a sole trader is.

Part of Set up as a sole trader: step by step

  1. Step 1 Check if being a sole trader is right for you

    1. Find out more about becoming a sole trader

  2. Step 2 Choose your business name

    1. Check the rules for naming your business

  3. Step 3 Check what records you need to keep

    When you start trading you must keep records. This will help you work out your profit or loss for your tax return.

    1. Find out what business records you need to keep

  4. Step 4 Register as a sole trader

    1. You are currently viewing: Check how to register as a sole trader

  5. Step 5 Check what taxes may apply to you

    1. Check what taxes may apply to you as a sole trader

  6. Step 6 Plan for your tax bill

    You may need to pay Income Tax on your profits and may need to pay National Insurance contributions.

    1. Get an estimate of how much you will need to pay
    1. Find out more about Income Tax rates
    1. Find out more about National Insurance rates

  7. Step 7 Get help and support

    1. Sign up for business support emails
    1. Join a webinar or watch a video to learn more about your responsibilities
    1. Find out how to choose a tax agent if you want to use one