How to Register as Self-Employed as a Tradesman

Are you a tradesman thinking about taking the leap into self-employment? Becoming a self-employed tradesperson comes with a lot of benefits, including choosing your own clients, enjoying greater flexibility, earning more money, and having a better work-life balance.

If you have skills in a certain trade and the ambition and dedication it takes to work for yourself, then becoming self-employed could be the perfect opportunity for you.

As well as telling HMRC, tradespeople have extra rules to think about. If you work for a contractor, the Construction Industry Scheme is also likely to apply. It's also worth sorting public liability insurance before you take on your first job.

This guide covers everything you need to know about how to register as a sole trader, from the paperwork HMRC asks for to your ongoing responsibilities afterwards.

What Does Self-Employed Mean?

When someone is self-employed, they run their business themselves and take full responsibility for all the successes and failures that come with the business. Self-employed workers are not paid through the PAYE system, and they don't have all of the employment rights and responsibilities that come with being an employee.

It is possible to be both employed and self-employed at the same time, so if you're interested in making a slow transition into self-employment, this is entirely possible.

When a person is self-employed, they will still have protection for their health and safety, and, in some cases, they will have protection against discrimination. The self-employed person's rights and responsibilities are set out according to the terms of the contract that they have with their client.

Pros and Cons of Being Self-Employed

There are a number of advantages and disadvantages of becoming self-employed. Below is a list of the pros and cons of becoming self-employed:

Pros

• Your earning potential is higher, as it's limited only by how much work you take on rather than a fixed salary.
• You can set your own working hours and fit them around other commitments.
• You get to choose which clients you work with.
• You'll work on a wider variety of projects and pick up new skills along the way.

Cons

• Your income can fluctuate significantly from month to month.
• You won't get paid holiday or sick pay.
• Your working hours tend to be longer and less predictable than an employee's.
• You're responsible for handling your own tax and National Insurance.

How to Register as Self-Employed

If you have decided to take the leap into becoming a self-employed tradesperson, then you are right at the start of a very exciting change in your life. Before you get stuck into working for yourself, there are a few things that you need to make sure you do.

The first thing you need to do as a self-employed worker is to set up as self-employed with HMRC. Usually, this will involve registering as a sole trader.

Below is a guide on how to register as self-employed in the UK:

Do You Have to Register at All?

You must register for Self Assessment as a sole trader if you earned more than £1,000 from self-employment in a tax year. A tax year runs from 6 April to 5 April.

If your gross trading income was £1,000 or less, you don't have to tell HMRC at all, unless you need to register for another reason. This £1,000 is known as the trading allowance, a tax exemption on gross income. If you claim it, you can't also deduct your business expenses, so where your expenses are higher than your income, it's usually better to claim the expenses instead.

You can still register voluntarily below the threshold. Tradespeople sometimes do this to prove they're self-employed, to pay voluntary Class 2 National Insurance, or to register as a Construction Industry Scheme (CIS) subcontractor.

Registering as Self-Employed with HMRC

Registering as self-employed is actually more straightforward than you may think. Simply head over to the HMRC self-employed registration page and enter your email address. You will then need to complete the rest of the registration process.

This is quite simple, and you will just need to input some bits of information about yourself and your business. Below is an overview of the information that you will need to provide when you register:

• Your basic personal details.
• Your National Insurance number.
• Your home address.
• Some information about the job that you do.
• The date that you started your business.

Once you have completed the registration, you will receive a letter from HMRC with your 10-digit Unique Taxpayer Reference (UTR). You will need to keep this number safe as you will need it when completing your self-assessments.

You will also be set up with an online account where you will have access to a range of digital services.

Your UTR usually arrives by post around 15 days after you register, or longer if you live overseas. You don't need to wait for the letter, though. Once HMRC has issued your UTR, it appears in your Personal Tax Account and the HMRC app.

Naming Your New Business

When you register as self-employed, you will also need to come up with a name for your business. Many tradespeople choose to trade under their own name. However, it is often better to choose a name that makes you stand out from the crowd.

When choosing a business name, you should choose one that is unique, and that reflects the nature of your business. This should be something that people recognise right away.

A sole trader doesn't register a business name, there's no step for it. The real risk is trade mark infringement, not copyright, so check your name isn't too similar to one that's already trademarked, as you may have to change it if the owner complains.

It's worth searching the trade mark register and Companies House before you settle on a name. It can't include 'limited', 'Ltd', 'limited liability partnership', 'LLP', 'public limited company' or 'plc', and it can't be offensive. You must show your own name and business name on paperwork such as invoices and letters.

When to Register as Self-Employed

HMRC claims that you should register as self-employed as soon as possible. However, you do have a deadline. Legally, you must register as self-employed by the 5^th of October after the end of the tax year that you began trading as self-employed.

For example, if you started your business in May of 2026, then you will need to register as self-employed by the 5^th of October 2027.

It's best not to leave your registration this late. You should aim to do it as soon as possible either before or shortly after you begin working for yourself.

If anything goes wrong and you fail to register by the appropriate deadline, then you could find yourself with a very large tax bill or even a fine, in some cases.

Your Responsibilities After You've Registered

Once you have completed your registration as self-employed, you will need to keep up with a number of responsibilities. The most important of these is to keep accurate records.

You will need to record all of your sales and outgoings that are associated with your business. This can include keeping hold of invoices and receipts, and making notes of all of your business expenses. You'll need to keep these records for at least 5 years after the 31 January submission deadline for that tax year, or for 15 months after sending a return if you file it more than 4 years after its deadline.

It is also important to keep hold of any documents that you receive from HMRC. These letters may help you complete your self-assessments quickly and properly.

By January 31^st of every year, you must file your self-assessment tax return. For more on how tax works when you're self-employed, see our full guide. You will need to make payments to HMRC on or before the 31^st of January, and, depending on your earnings, you may also need to pay part of your return on the 31^st of July.

Once your qualifying income (your gross self-employment income plus any property income) passes a set threshold, you'll need to use Making Tax Digital for Income Tax instead of a standard return. This is being phased in gradually:

• Over £50,000 in the 2024 to 2025 tax year — already in force from 6 April 2026.
• Over £30,000 in the 2025 to 2026 tax year — from 6 April 2027.
• Over £20,000 in the 2026 to 2027 tax year — from 6 April 2028.

In practice, this means keeping digital records, using compatible software, sending a quarterly update for each business, and filing your return through that software. It applies across the UK.

You may be able to stagger these payments when needed, provided HMRC agrees on a payment plan with you.

As well as Income Tax, you'll pay National Insurance on your profits:

• Class 4 National Insurance applies at 6% on profits between £12,570 and £50,270, and 2% on anything above that.
• Class 2 no longer has to be paid — once your profits reach £7,105 a year, it counts as paid automatically.
• Below £7,105, you can pay Class 2 voluntarily, at £3.65 a week, to protect your State Pension record.
• Both are calculated and collected through your Self Assessment return, rather than paid separately.

You must register for VAT once your total taxable turnover over the last 12 months goes above £90,000, or if you expect to pass that figure in the next 30 days on its own. Below the threshold, registering is your choice. Some tradespeople do it anyway so they can reclaim the VAT on materials, tools and van costs.

Register for CIS if You Work for Contractors

If you carry out construction work for a contractor, it falls under the Construction Industry Scheme (CIS). The contractor deducts money from each payment they make you and passes it to HMRC as an advance towards your tax and National Insurance.

Registered subcontractors have 20% deducted, while unregistered subcontractors have 30% deducted. Subcontractors don't have to register for CIS. The 10-point difference is the main reason to do so. Contractors, on the other hand, must register. Once registered, you can also apply for gross payment status, which means you're paid with no deduction at all.

FAQs

Conclusion

If you are thinking about becoming a self-employed tradesperson, then you will need to register as self-employed. In this article, we have gone over everything you need to know about completing this process, including how to register with HMRC.

We have also provided all of the details about being self-employed, including the pros and cons of taking this leap. If you are on the fence about becoming self-employed, then the information above should help you decide and will help you understand the steps that you need to take to get started.