Start a business in the United Kingdom

Step 1Register for Self Assessment with HMRC

Needed if you earn more than £1,000 from self-employment in a tax year. Do it by 5 October after the end of that tax year.

Step 2Register for VAT when you need toIf it applies

Required once your taxable turnover goes over £90,000 in 12 months, or is expected to in the next 30 days.

Step 3Use Making Tax Digital for Income Tax if you need toIf it applies

Required since 6 April 2026 if your qualifying income from self-employment and property is over £50,000: keep digital records with compatible software and send quarterly updates to HMRC.

Step 4Keep records of your income and expenses

Keep records of all your sales and income and all your business expenses, with proof such as receipts, bank statements and sales invoices. You need them to work out your profit for your tax return and to show HMRC if asked.

Step 5Send your tax return and pay your tax by 31 January

The tax year runs from 6 April to 5 April. Send your online Self Assessment tax return and pay the tax you owe by 31 January after it ends. If you make payments on account towards your next bill, there is a second payment deadline on 31 July.

Step 6Pay your National Insurance through Self Assessment

Most sole traders pay Class 2 and Class 4 National Insurance through Self Assessment, with their tax. What you pay depends on your profits: see Class 2 and Class 4 National Insurance in the legal forms table.