Becoming Self-Employed? Who to Tell, How and When

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Going self-employed feels enormous and administratively tiny at the same time. The big decision is yours. Telling HMRC, the bit that follows, is usually more straightforward than most people fear. Here’s who to tell, how, and by when.

If you become self-employed, you normally need to register for Self Assessment with HMRC by 5 October following the end of the tax year in which you started trading. For example, if you start in August 2026, you normally need to register by 5 October 2027. Your first online tax return and tax payment will usually be due by 31 January 2028.

Tell HMRC you’ve started.

When you start working for yourself, you need to let HMRC know so they can set you up for Self Assessment. The deadline is 5 October following the end of the tax year you started in. So if you began working for yourself in, say, August 2026 (the 2026/27 tax year), you have until 5 October 2027 to register. Leave it later than that, and you risk a penalty.

Our advice is not to sit on it. Registering early gives you time to get set up properly, and it means one less thing hanging over you. If you’d rather register by phone, call HMRC’s self-employment and income tax line on 0300 200 3300.

What you’ll need to hand

You can register online and registering is quick if you’ve got the details ready. You’ll need:

Your National Insurance number
Your contact details
The date you started working for yourself
Your UTR (unique taxpayer reference), if you’ve ever filed a tax return before

Once you’re registered, HMRC issues your UTR and will ask you to complete a Self Assessment return each year. The first return covers the tax year you started, and the online filing deadline is 31 January after that tax year ends.

What about National Insurance?

This is the part that’s changed a lot, and it’s good news. Self-employed people used to pay a flat weekly Class 2 National Insurance contribution. From April 2024, that requirement was removed. HMRC says that if profits are at least £7,105, Class 2 is treated as paid; below that, someone can choose to pay voluntary Class 2, currently £3.65 a week. In practical terms, if your profits are above the small profits threshold, you no longer pay Class 2 at all, but you still build up your entitlement to the State Pension and certain benefits as if you had.

You’ll still pay Class 4 National Insurance once your profits pass £12,570. For 2026/27, the rate is 6% on profits between £12,570 and £50,270 and 2% on profits above £50,270.

If your profits are low, it can still be worth paying Class 2 voluntarily to protect your State Pension record. That’s worth a quick conversation rather than a guess, because the right answer depends on your wider circumstances.

Do I need to register if I earn less than £1,000?

If your gross self-employed income is £1,000 or less in a tax year, you may not need to register for Self Assessment because of the trading allowance. There are exceptions, and you may still choose or need to register in some circumstances.

Keep your records as you go.

The single habit that makes self-employment easier is keeping your records straight from day one, rather than facing a shoebox (or these days, a chaotic folder of photos) the following January. Track your income and expenses as you go, keep your business banking separate if you can, and you’ll thank yourself at return time.

Will I need to use Making Tax Digital?

Possibly, although most people who have only just become self-employed won’t fall into it immediately. Making Tax Digital for Income Tax is being phased in for sole traders and landlords based on their total qualifying income from self-employment and property.

It applies from April 2026 where qualifying income is over £50,000, from April 2027 where it is over £30,000, and from April 2028 where it is over £20,000. Qualifying income means your gross income before expenses, not your profit.

If MTD applies, you’ll need compatible software, digital records and quarterly updates to HMRC. We can deal with the MTD requirements for clients who fall within the rules.

Frequently asked questions about becoming self-employed

When do I need to tell HMRC I’ve become self-employed?

You normally need to register for Self Assessment by 5 October following the end of the tax year in which you started trading. So if you start working for yourself in August 2026, you’ll normally need to register by 5 October 2027.

You don’t need to wait until the deadline though. Registering earlier gives you more time to get everything set up.

Do I need to register as self-employed if I earn less than £1,000?

Not necessarily. If your gross income from self-employment is £1,000 or less during the tax year, the trading allowance may mean you don’t need to tell HMRC or complete a Self Assessment return for that income.

There are exceptions, and you may still want to register in some circumstances, so don’t assume the £1,000 allowance automatically applies without checking.

How do I register as self-employed with HMRC?

You can register online through GOV.UK. You’ll usually need your National Insurance number, contact details and the date you started working for yourself. If you’ve previously completed a Self Assessment tax return, you’ll also need your existing Unique Taxpayer Reference (UTR). You can also register by phone, on HMRC’s self-employment and income tax line: 0300 200 3300.

Once you’re registered, HMRC will use Self Assessment to collect the Income Tax and National Insurance due on your self-employed profits.

When is my first tax return due after becoming self-employed?

Your first tax return covers the tax year in which you started trading. The tax year runs from 6 April to 5 April, and an online Self Assessment return is normally due by 31 January following the end of that tax year.

For example, if you start your business in August 2026, your first return will cover the year ending 5 April 2027 and will normally need to be filed online by 31 January 2028. Any tax due will usually be payable on the same date.

Do I need Making Tax Digital if I’ve just become self-employed?

Possibly, but becoming self-employed doesn’t automatically mean you need to join Making Tax Digital for Income Tax straight away.

MTD is being introduced based on your total qualifying gross income from self-employment and property, before expenses. The threshold is over £50,000 from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028.

If MTD applies to you, you’ll need to keep digital records, use compatible software and send quarterly updates to HMRC. If you’re one of our clients, we’ll let you know when the rules apply to you and what you need to do.

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Here’s how we help

If you appoint us, most of the above will no longer be your problem. We register you with HMRC, handle the correspondence, and prepare and file your return using our own systems, so you don’t need to set anything up with HMRC online yourself. We’ll also tell you what to pay and when, and flag whether voluntary National Insurance is worth it in your case.

If you’re already working with another accountant, moving over is more straightforward than most people expect, and our guide on how to change accountants walks you through it.