Do I Need to Register as Self-Employed?

Quick answer

The short answer: if you’ve earned (or expect to earn) more than £1,000 from self-employment in a tax year, yes — you need to register with HMRC. Below £1,000, you’re covered by the trading allowance and don’t need to do anything.

But the detail matters, because “self-employed” covers more situations than most people realise. This guide is part of our getting started series for new sole traders.

The £1,000 trading allowance

Every UK taxpayer gets a £1,000 trading allowance each tax year (6 April to 5 April). If your total self-employed income — not profit, but gross income before expenses — is under £1,000, you don’t need to register, file a tax return, or pay any tax on it.

This applies per person, not per business. If you have three side hustles that together bring in £900, you’re still under the threshold.

Important: the £1,000 is your income, not your profit. If you earned £1,200 but spent £500 on materials, your income is still £1,200 — above the threshold. You’d register, then deduct the £500 as expenses on your tax return to reduce what you owe.

What counts as self-employment?

You’re self-employed if you regularly do work for payment and you’re not on someone else’s payroll for that work. It doesn’t matter whether you think of it as a “real business” or not. HMRC cares about the activity, not the label.

Common situations that count:

Things that generally don’t count:

Specific situations

”I earn less than £1,000”

You don’t need to register. The trading allowance covers you completely. No tax return needed, no National Insurance to pay, nothing to tell HMRC.

However, you can register voluntarily if you want to:

For most people earning under £1,000, there’s no need to do anything.

”I earn less than £12,570” (the personal allowance)

You still need to register if you’re over the £1,000 trading allowance — even though you won’t owe any Income Tax. The personal allowance (£12,570 in 2025/26) means your first £12,570 of total income is tax-free, but HMRC still needs to know about your self-employed income. You may owe Class 4 National Insurance depending on your profits.

The registration process is quick and free — don’t skip it just because you think your income is too low to matter.

”It’s just a side hustle alongside my day job”

Same rules apply. Your employment doesn’t change your obligation to register self-employment income. You’ll pay tax on your self-employed profits on top of the tax your employer already deducts from your salary via PAYE.

The good news: your personal allowance is usually already used up by your salary, so you won’t “lose” it — you’ll just pay 20% (basic rate) on your self-employed profits above your expenses. Our side hustle tax guide walks through the exact maths.

You can absolutely be employed and self-employed at the same time — HMRC handles it through Self Assessment.

”I do Uber Eats / Deliveroo / platform gig work”

Yes, you need to register. These platforms treat you as self-employed, not as an employee. They don’t deduct tax from your earnings — that’s on you. If your total platform income exceeds £1,000 in a tax year, register as a sole trader and file a Self Assessment return.

”I sell on eBay / Vinted / Depop”

It depends on what you’re selling:

Since January 2024, platforms like eBay and Vinted report seller data to HMRC if you make more than 30 sales or earn over £1,700 in a year. HMRC can cross-reference this with your tax records — so the days of flying under the radar are effectively over.

What happens if I don’t register?

If you should have registered and didn’t, HMRC can:

In practice, if you register late but before HMRC contacts you, and you owe relatively small amounts, penalties are often reduced or waived entirely. But it’s not a risk worth taking. Registration takes about 10 minutes and costs nothing.

Next step

If you need to register, here’s what to do now:

  1. Register as a sole trader with HMRC — our step-by-step guide walks through the whole process in 10 minutes

  2. Open a business bank account — free, takes minutes, and separates your business money from personal spending

  3. Set up basic accounting — connect software to your bank so every transaction is tracked from day one

  4. Learn what expenses you can claim — reducing your taxable profit is the simplest way to lower your bill

If you’re under £1,000 and don’t need to register, keep a rough record of your income anyway. Side hustles have a habit of growing faster than expected.

Last updated: March 2026. Trading allowance and personal allowance figures are for the 2025/26 tax year. Check gov.uk for the latest thresholds.