Skip to content
FREE GUIDE · 7 DAYS FREE ON LEKHIO

Set up your business, start to finish.

Tell us what you are setting up. We give you the exact steps, the forms and the codes to register yourself on GOV.UK, plus where to sort a bank, an email and insurance, in plain English. The guide is free. Start with Lekhio and your first 7 days are free, then £13.99 a month for a sole trader or a landlord. £21.99 for a limited company or a partnership.

REGISTER BY 5 OCTOBER

Already working for yourself? Find your date.

You have to tell HMRC by the 5 October after the tax year you started in. Two taps and you have yours.

When did you start?

What are you setting up?

Tell us, and we will give you the exact steps, the forms, and the codes you need. Free, in plain English.

The whole thing, written out.

If you would rather read it than click through it, here is every route in full. Registering as a sole trader is free. Nobody should be charging you for it.

How to register as a sole trader

This is where most trades start, and it is free. You are not setting up a company, you are telling HMRC that you work for yourself. It takes about ten minutes and nobody should be charging you for it.

  1. Check you need to register. Once you earn more than £1,000 a year working for yourself, HMRC needs you registered for Self Assessment. The deadline is 5 October after the tax year you started, so do not sit on it.Under £1,000 a year? The trading allowance covers you and you do not need to register yet.
  2. Set up your Government Gateway. This is your login for everything HMRC. Create one with your email and you get a user ID and password. You will use it to register and, later, to file.
  3. Register for Self Assessment as self employed. Tell HMRC you are working for yourself. The form is the CWF1, done online. It also signs you up for Class 2 and Class 4 National Insurance at the same time, so this is one job, not three.
  4. Get your UTR. HMRC posts you a Unique Taxpayer Reference, a 10 digit number, within about 10 working days, plus an activation code for your online account. Keep the UTR safe, you need it every time you file.
  5. Start keeping digital records. From day one, log your income and costs. Lekhio does this from a text, so you are ready for Making Tax Digital with no spreadsheets and no January scramble.

How to trade under a business name

A name like Smith Electrical does not have to be registered anywhere and it does not change your tax. You are still a sole trader. There are rules on what the name can be, and they are worth two minutes of your time before you paint it on a van.

  1. Pick your trading name. You can trade under a name like Smith Electrical without registering it anywhere. The rules: it cannot include Limited, Ltd, plc or LLP, cannot be offensive, and cannot copy an existing trade mark. Put your own name and the business name on your invoices.Check the name is free as a trade mark on the IPO website, and grab the matching domain while you are at it.
  2. Check you need to register for tax. A business name does not change your tax. You are still a sole trader, so you register for Self Assessment once you earn over £1,000 a year, by 5 October after the tax year you started.
  3. Set up your Government Gateway. This is your login for everything HMRC. Create one with your email and you get a user ID and password. You will use it to register and, later, to file.
  4. Register for Self Assessment as self employed. Tell HMRC you are working for yourself. The form is the CWF1, done online. It also signs you up for Class 2 and Class 4 National Insurance at the same time, so this is one job, not three.
  5. Get your UTR. HMRC posts you a Unique Taxpayer Reference, a 10 digit number, within about 10 working days, plus an activation code for your online account. Keep the UTR safe, you need it every time you file.
  6. Start keeping digital records. From day one, log your income and costs. Lekhio does this from a text, so you are ready for Making Tax Digital with no spreadsheets and no January scramble.

How to set up a limited company

A registered company is more protection and more admin. It costs money to set up, it has its own tax return, and the details are public. Worth it for some, overkill for plenty.

  1. Choose your company name. Check it is free on the Companies House register. It must end in Limited or Ltd, must not be the same as an existing company, and cannot use sensitive words without permission.
  2. Gather what you need, including your SIC code. A registered office address, which is public, at least one director, your shareholders and how the shares split, anyone with significant control, usually anyone owning more than 25%, and a SIC code that describes what you do. Tell us your trade below and we will give you the exact code.
  3. Verify your identity. Since late 2025, every director and person with significant control must verify their identity with Companies House. You do it online with photo ID and get a personal code. Sort this before or as you register.
  4. Register at Companies House. Register online. It costs £100 and you are usually set up within 24 hours. You get a Certificate of Incorporation and your company number.
  5. Tell HMRC, set up Corporation Tax. Within 3 months of starting to trade, register the company for Corporation Tax. As a director you may also need to register for your own Self Assessment.

What else you might have to register for

None of these apply to everybody, and most sole traders need none of them on day one.

VAT

Once your VAT taxable turnover for the last 12 months goes over £90,000, or you expect it to in the next 30 days alone. Most sole traders never reach it.

CIS

In construction? Register for the Construction Industry Scheme. As a subcontractor it drops your deduction from 30% to 20%.

PAYE

Taking on your first employee or apprentice? Register as an employer before their first payday.

Questions people ask

Does it cost anything to register?

Registering as a sole trader with HMRC is free. There is no fee, there is no form to buy, and there is no service you need to pay for. If a website is quoting you a price to register as self employed, you are being charged for something GOV.UK does for nothing in about ten minutes. A limited company is different: Companies House charges £100 to register online and you are usually set up within 24 hours.

When do I have to register as self employed?

Once you earn more than £1,000 in a tax year from working for yourself. The deadline is 5 October after the end of the tax year you started in, and HMRC can charge a penalty if you tell them later than that. You submit it yourself on GOV.UK, and it is free.

Sole trader or limited company?

Sole trader is simpler, free to set up and enough for most trades starting out. A limited company gives you limited liability and can be more tax efficient at higher profits, but it costs £100 to register, has its own Corporation Tax return, and your details are on a public register.

What is a UTR and when do I get one?

A Unique Taxpayer Reference, ten digits, posted to you by HMRC after you register, usually within about ten working days. You need it every time you file, so keep it somewhere you will find it again.