When You Must Register
You must register as self-employed with HMRC if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April). This applies whether freelancing is your main income or a side hustle alongside employment.
Key points about the registration requirement:
- £1,000 threshold – The Trading Allowance means you don't need to register if self-employed earnings are under £1,000 annually
- Gross income – The threshold applies to turnover (income), not profit
- Tax year basis – Each tax year runs from 6 April to 5 April the following year
- Register early – You can register before earning anything if you know you'll be self-employed
Even if you earn under the £1,000 Trading Allowance, you may choose to register voluntarily. This allows you to pay voluntary National Insurance contributions (protecting your State Pension entitlement) and claim business expenses that exceed the £1,000 allowance.
Step-by-Step HMRC Registration
Registering as self-employed is done online through the Government Gateway. Here's the process:
Step 1: Create a Government Gateway Account
If you don't already have one, go to gov.uk/log-in-register-hmrc-online-services and create an account. You'll need to verify your identity, which may require your National Insurance number, a recent payslip or P60, or a valid UK passport.
Step 2: Register for Self Assessment
Once logged in, register for Self Assessment as a self-employed individual:
- Go to gov.uk/register-for-self-assessment
- Select that you're registering because you're self-employed
- Follow the prompts to complete your registration
Step 3: Complete the Registration Form
You'll be asked to provide:
- Personal details (full name, date of birth, address)
- National Insurance number
- Contact details (phone number, email)
- The date you started (or will start) self-employment
- A description of your business activity
- Your business name (can be your own name)
- Your business address (can be your home address)
Step 4: Receive Confirmation
After submitting, you'll receive immediate online confirmation that your registration is being processed. HMRC will then send your Unique Taxpayer Reference (UTR) number by post.
💡 Practical Example
Lisa started freelance graphic design work on 1 September 2025. She registered with HMRC the same week, describing her business activity as "Graphic design services" and using her home address as her business address. She received her UTR number by post within two weeks and was set up to start invoicing clients immediately.
What You Need to Register
Before starting the registration process, gather:
Essential Information
- National Insurance number – Found on payslips, P60, or benefit letters
- Personal details – Full legal name, date of birth, current address
- Contact information – Phone number and email address
- Start date – When you began (or will begin) trading
- Business description – A brief description of what you do (e.g., "Website development," "Marketing consultancy," "Photography services")
For Identity Verification
If creating a new Government Gateway account, you may need:
- Valid UK passport details, or
- Recent payslip or P60 from an employer, or
- UK driving licence details
Optional Information
- Trading name – If different from your personal name
- Business address – If different from your home (your home address is fine)
- Accountant details – You can add these later if you hire one
Deadlines and Penalties
The registration deadline is 5 October following the end of the tax year in which you started self-employment.
| If You Started Self-Employment | You Must Register By |
|---|---|
| Between 6 April 2025 and 5 April 2026 | 5 October 2026 |
| Between 6 April 2024 and 5 April 2025 | 5 October 2025 |
| Between 6 April 2023 and 5 April 2024 | 5 October 2024 |
What If You Miss the Deadline?
If you fail to register by the deadline, you may face:
- Penalties for late registration – HMRC can charge fines based on the tax you should have declared
- Interest on unpaid tax – Charged from when the tax should have been paid
- Behaviour-based penalties – More serious penalties if HMRC believes you deliberately avoided registration
However, HMRC generally takes a proportionate approach for genuine oversights, especially for first-time freelancers. If you've missed the deadline, register as soon as possible. The sooner you come forward, the more favourably HMRC typically views the situation.
Key Dates for Your Calendar
| Date | What Happens |
|---|---|
| 5 October | Deadline to register for Self Assessment for the previous tax year |
| 31 October | Deadline for paper tax returns (rarely used now) |
| 31 January | Deadline for online tax returns AND paying tax owed |
| 31 July | Second payment on account due (if applicable) |
What Happens After Registration
Once registered, several things happen:
You'll Receive Your UTR Number
Within 10 working days (21 days if abroad), HMRC will post your Unique Taxpayer Reference (UTR) number. This 10-digit number identifies you as a taxpayer and is needed for filing returns. Learn more in our UTR Number guide.
You'll Get an Activation Code
Separately, you'll receive an activation code to access your online Self Assessment account. This allows you to view your tax position, file returns, and manage your details online.
Start Keeping Records
From your start date, you must keep records of:
- All business income (sales, invoices paid)
- All business expenses (with receipts)
- Records of any assets purchased for the business
- Bank statements for your business account
Records must be kept for at least 5 years after the 31 January submission deadline for that tax year.
File Your First Tax Return
You'll file your first Self Assessment tax return by 31 January following the end of your first tax year of trading. For example:
- Started freelancing: September 2025
- First tax year: 2025/26 (6 April 2025 - 5 April 2026)
- Tax return deadline: 31 January 2027
National Insurance Classes Explained
As a self-employed person, you may pay two types of National Insurance:
National Insurance Credits (Formerly Class 2)
From April 2024, mandatory Class 2 NI was abolished. Self-employed people now automatically receive NI credits towards their State Pension when profits exceed £6,725—no payment required.
If your profits are below £6,725 but you want to protect your State Pension entitlement, you can pay voluntary Class 2 contributions (around £180/year).
Class 4 National Insurance
- Rate: 6% on profits between £12,570 and £50,270; 2% on profits above £50,270
- Who pays: Self-employed people with profits above £12,570
- Purpose: Contribution towards state benefits (doesn't directly affect State Pension)
- When paid: Annually, through Self Assessment
💡 Practical Example
David's freelance profits were £35,000 for the tax year. His National Insurance calculation:
Class 4: 6% × (£35,000 - £12,570) = £1,345.80
(NI credits are automatic—no Class 2 payment required since April 2024)
Voluntary Contributions
If your profits are below £6,725 but you want to protect your State Pension entitlement, you can pay voluntary Class 2 contributions. This is often worthwhile as it's relatively cheap (around £180/year) and each year of contributions counts towards your pension.
Most people need 35 qualifying years of National Insurance contributions for a full State Pension. Check your record at gov.uk/check-national-insurance-record.