Do You Need to Register as Self-Employed?
Many people in the UK start earning extra income outside of their normal job, whether that’s selling handmade products on Etsy, driving for Uber, or offering freelance services. What catches many people off guard is that even small amounts of self-employed income can trigger a legal requirement to register with HMRC. Failing to do so can result in penalties, even if you did not realise you needed to register.
This guide explains the rules in plain English, so you know exactly when you must register, how to do it, and what happens afterwards. We will also look at common scenarios such as selling online, part-time freelancing, and one-off projects, so you can make sure you stay compliant.
When You Must Register
- You must register if you earn over £1,000 from self-employment in a tax year
- The deadline is 5 October after the end of the tax year you started
- Registration is free and takes around 10 minutes
You must register for Self Assessment and declare yourself self-employed if any of the following apply:
- You earn more than £1,000 in total self-employed income during a single tax year
- You want to claim business expenses instead of using the £1,000 trading allowance
- HMRC has sent you a notice to file a tax return
These rules apply even if you are also employed full-time through PAYE. If you have a side hustle, the income is still separate and needs to be declared. Unsure if what you do counts as a business? Read our Side Hustle vs. Hobby guide.
Examples
- Freelance graphic designer: Earns £1,200 from projects alongside a full-time job. Must register.
- eBay seller: Sells unwanted items once or twice a year for £500. Does not need to register.
- Part-time gardener: Earns £900 from regular weekend work but wants to deduct fuel and tools as expenses. Must register to claim.
How to Register with HMRC
Registering is straightforward and free. The process is:
- Create a Government Gateway account (if you do not already have one)
- Register for Self Assessment and indicate you are self-employed
- Wait for your Unique Taxpayer Reference (UTR) to arrive in the post
You can register online here: gov.uk/register-for-self-assessment. Keep your UTR safe — you will need it every year to file your tax return.
Registration Deadlines
The deadline is 5 October after the end of the tax year in which you started self-employment.
| Tax Year | When You Started | Registration Deadline |
|---|---|---|
| 2025/26 | 6 Apr 2025 – 5 Apr 2026 | 5 October 2026 |
What Happens After You Register?
Once registered, you will:
- Submit a Self Assessment tax return every year
- Pay any income tax and National Insurance owed
- Keep accurate records of income and expenses
HMRC may also expect you to make Payments on Account if your tax bill is high enough. This means paying part of the next year’s bill in advance. It is important to budget for this so you are not caught off guard.
What If You Do Not Register?
If you miss the deadline, HMRC can fine you — even if you owe no tax. Penalties start at £100 and increase if the delay continues. Interest may also be charged on any unpaid tax.
Frequently Asked Questions
What if I earn under £1,000?
You do not need to register unless you want to claim expenses or HMRC tells you to file a return.
Can I register even if I earn very little?
Yes. Some people register voluntarily to claim expenses or build National Insurance contributions.
Do I need to register if I sell online?
If you are selling regularly with the intention of making a profit and your total sales are over £1,000 in a tax year, you must register. This applies to platforms like eBay, Etsy, and Vinted.
What happens if I register late?
You may face penalties and interest. Register as soon as possible to minimise costs.
Can I deregister later?
Yes. If you stop being self-employed, you can notify HMRC and close your Self Assessment account.
Need Help With the Next Steps?
If you are new to self-employment, the following guides will help you stay organised and compliant: