How to Register as a Sole Trader in the UK (Step-by-Step Guide for 2025)
Thinking about starting a side hustle or becoming self-employed in the UK? Before you start making money, you must register as a sole trader with HMRC.
🚀 In this guide, you’ll learn:
✅ Who needs to register as a sole trader
✅ How to register online (step-by-step process)
✅ What taxes & paperwork you need to know
💰 Whether you're freelancing, selling products, or offering services, this guide makes registering simple—so you can focus on growing your business.
Who Needs to Register as a Sole Trader?
💡 You MUST register as a sole trader if:
✅ You earn over £1,000 from self-employment in a tax year.
✅ You sell products, services, or work as a freelancer.
✅ You want to declare your income legally & pay tax correctly.
📌 Even if you have a full-time job, you must register if you earn over £1,000 from your side hustle!
How to Register as a Sole Trader (Step-by-Step)
📢 Step 1: Check if You Need to Register
If you earn over £1,000 from self-employment, you must register.
If under £1,000, you don’t need to register (but can still do so voluntarily).
📢 Step 2: Set Up a Government Gateway Account
🔹 Go to: 👉 HMRC Government Gateway
🔹 Click ‘Create an Account’ and follow the steps.
🔹 You’ll need:
✅ National Insurance Number
✅ Address & contact details
📢 Step 3: Register as Self-Employed on HMRC
🔹 Go to: 👉 HMRC Self-Employed Registration
🔹 Fill in your details & business type.
🔹 HMRC will send you a Unique Taxpayer Reference (UTR).
📢 Step 4: Set Up a Business Bank Account (Optional, but Recommended)
Keep your business & personal money separate for tax purposes.
Recommended: Free business accounts like Mettle (owned by NatWest).
What Happens After You Register?
✔ You’ll receive a Unique Taxpayer Reference (UTR) from HMRC.
✔ You must file a Self-Assessment tax return every year.
✔ You need to save for tax payments.
📌 Join Hustle Mate and use our Self-Employed Tax Calculator to estimate your tax bill & avoid surprises.
