Guide

Going self-employed as a tradesperson: the UK checklist

Updated 2 October 2026 · 7 minute read

Going it alone is mostly paperwork you only do once, plus a few deadlines you need to know about. Here's the whole list for tradespeople, with a link to the official page for each step.

1. Sole trader or limited company?

Most tradespeople start as a sole trader: it's free, quick and the paperwork is simple. The catch is that you're personally responsible for any business debts. A limited company separates the business from you, but it must be registered with Companies House before it trades, pays Corporation Tax (19% on profits up to £50,000, 25% over £250,000, with marginal relief in between), and has to file accounts and company tax returns. New directors must also verify their identity with Companies House. Many trades start as sole traders and switch later; an accountant can tell you when it's worth it.

2. Register with HMRC

• You must register for Self Assessment once you earn more than £1,000 from trading in a tax year.
• The deadline is 5 October after the end of the tax year you started in. Tax years run from 6 April to 5 April.
• You'll get a Unique Taxpayer Reference (UTR), which you need for your tax return and for CIS. HMRC's reply-times tool shows how long it's currently taking.

3. Know the Self Assessment deadlines

• 31 October: paper tax return deadline.
• 31 January: online tax return deadline, and the date to pay what you owe plus your first payment on account.
• 31 July: second payment on account.

Miss the return deadline and there's a £100 penalty straight away, rising after three months. Put money aside for tax as you go: our guide on how to price a job shows the 2026/27 rates.

4. Check whether Making Tax Digital applies

Since 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send HMRC quarterly updates using compatible software. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Qualifying income is your self-employment and property income before expenses.

5. Get the right insurance

• Employers' liability insurance is a legal requirement once you employ anyone, with at least £5 million of cover. Fines can be up to £2,500 for every day you're not covered.
• Public liability insurance is generally voluntary, but customers, letting agents and contractors often ask for it.
• Your van: tell your insurer you use it for work. Business use has to be declared.

6. Register for CIS if you work for contractors

If you'll do construction work for other contractors, register for the Construction Industry Scheme, or they'll deduct 30% from your payments instead of 20%. See our CIS guide.

7. Watch the VAT threshold

You must register for VAT if your taxable turnover over the last 12 months goes over £90,000. See should I register for VAT?

8. Trade registrations and waste

• Some work needs registration by law, such as Gas Safe for gas work, and some needs a scheme or building control sign-off, such as Part P electrical work. Our start-up guides for plumbers, electricians, builders and landscapers cover each trade.
• If you take waste away from jobs, you need to register as a waste carrier. Construction and demolition waste needs upper-tier registration (£191.02 in England). The system is due to change to environmental permits from 2027.

9. Name, bank account and paperwork

• Choose a name that follows the rules: see how to name your trade business.
• A separate business bank account isn't a legal requirement for a sole trader, but it makes your records and tax return far easier.
• Keep your records for at least 5 years after the 31 January deadline for that tax year.
• Get your quotes and invoices right: see how to write a quote and how to invoice as a sole trader.

10. Get found by your first customers

• Set up a free Google Business Profile. You can hide your home address and show the areas you cover instead.
• Ask every customer for a Google review from day one.
• Get a simple website with your services, your area and your number, so people who are recommended to you can check you out. See do I need a website?

This checklist covers England; some rules differ in Scotland, Wales and Northern Ireland. It's a summary, not tax or legal advice.

Sources

• GOV.UK: set up as a sole trader
• GOV.UK: register for Self Assessment if you're self-employed
• GOV.UK: Self Assessment deadlines
• GOV.UK: Self Assessment penalties
• GOV.UK: business legal structures
• GOV.UK: Corporation Tax rates and allowances
• GOV.UK: find out if and when you need to use Making Tax Digital for Income Tax
• GOV.UK: employers' liability insurance
• ABI: commercial motor insurance
• GOV.UK: register or renew as a waste carrier (England)
• GOV.UK: waste reforms (May 2026)
• GOV.UK: how long to keep your records
• business.gov.uk: getting a business bank account

Prices change. Figures were checked on the date above; check the provider's site for today's price.

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