Registering as a sole trader — step by step

Updated: 14/07/2026 · 5 min read

Registering as a sole trader is free and entirely online: create a Government Gateway account, register for Self Assessment, and HMRC posts you a UTR (Unique Taxpayer Reference). The legal deadline is 5 October after your first tax year ends — in practice, register as soon as you start.

What to prepare

  • National Insurance number
  • Personal details and UK address
  • The date you started trading
  • A short description of the trade (e.g. “construction subcontractor”, “cleaning services”)
  • ID for identity verification (passport / driving licence)

The steps

  • 1. gov.uk → “Set up as self-employed (sole trader)”
  • 2. Create a Government Gateway account
  • 3. Complete Self Assessment registration (CWF1 online)
  • 4. Wait for the UTR by post (~10–15 working days)
  • 5. Activate Self Assessment with the code HMRC sends
  • 6. Construction: additionally register for CIS as a subcontractor

Same-day follow-ups

  • Open a separate account for business money
  • Start capturing documents from the FIRST receipt — habit, not January archaeology
  • Diary: 31 January (return + payment), 31 July (instalment), 5 October (if you procrastinated)
  • Insurance appropriate to the trade

Common stumbles

  • Registering twice because the UTR “has not arrived” — call HMRC instead
  • Confusing UTR with NIN — different numbers, both needed
  • Skipping CIS registration in construction — costs 10% of every payment
  • Waiting “until things take off” — the UTR is needed earlier than you think

Every receipt captured, categorised and audit-ready.

Snap a photo or forward the email — Reclaim Day reads the vendor, amounts, VAT and date for you.

Start free

Frequently asked questions

How much does it cost to register?+

Nothing — HMRC registration is free and online. Costs only appear with optional extras like an accountant or insurance.

How long does it take?+

The form takes 15–30 minutes; the UTR usually arrives within 10–15 working days, longer in peak season.

Can I trade before the UTR arrives?+

Yes — you can work and invoice from your declared start date. Under CIS, deductions may be 30% until verification, reconciled at your return.

What is the actual deadline?+

Register by 5 October following the end of the tax year in which you started trading — but earlier is always safer.

Related guides

Your first year self-employed — the complete checklistSole trader vs limited company — which should you choose

This guide is general information, not tax advice. Rules and figures change — check gov.uk (HMRC) for current rates, and speak to an accountant about your situation.