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How to Register as a Sole Trader in the UK (Step-by-Step)

28 January 2026·By LedgerlyPro Team·Updated 28 January 2026·4 min readSole TraderHMRCGetting Started

General information only. This is not tax, legal or financial advice. Check HMRC guidance or speak to an accountant for your situation.

If you've earned over £1,000 from self-employment in a tax year, HMRC needs to know. Here's how to register as a sole trader.

When to register

By 5 October in your second tax year of trading. Earlier is fine — many people register the day they invoice their first client.

What you'll need

  • National Insurance number
  • Government Gateway ID (create one if you don't have one)
  • Date you started trading
  • Business name (can be your own name)
  • Business address

The actual steps

  1. Visit gov.uk and search "register for Self-Assessment"
  2. Sign in to your Government Gateway account
  3. Choose "I'm self-employed (sole trader)"
  4. Fill in the questionnaire
  5. HMRC posts your UTR (Unique Tax Reference) within 10 working days

After registration

You'll need to file a Self-Assessment by 31 January of the following tax year. You'll also pay Class 2 and Class 4 National Insurance.

Tip: open a separate finance record for business income/expenses on day one. It makes everything 10x easier when you start your books.

Your first week as a sole trader

  • Set up a separate business finance record
  • Choose bookkeeping software (LedgerlyPro Premium — £9.99/month with a 30-day free trial)
  • Import supported CSV/Excel files through Controlled Statement Import
  • Save 20–25% of every payment in a "tax pot" account

Already trading? Start your LedgerlyPro free trial and we'll prep your Self-Assessment summary automatically.

What this means inside LedgerlyPro

Keep the supporting invoice, receipt or statement with the relevant record, review suggested categories before saving, and use the tax or payroll workspace as a preparation aid. LedgerlyPro does not replace HMRC guidance or professional advice.

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