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The short answer
You can start trading before you register, but GOV.UK says you must register for Self Assessment as a sole trader if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April). Register by 5 October after the end of the tax year in which you started: for 2025-26, that was 5 October 2026, and registering late can bring a penalty.
Many Nigerians in the UK start small: braiding hair at weekends, catering events, selling fabric online, tutoring. Each of these can be self-employment, and HMRC expects to hear about it once it passes a low threshold. The process is simple, but newcomers often miss the timing because the UK tax year does not match the calendar year.
Do you need to register?
GOV.UK's sole trader guidance says you must register if you earn more than £1,000 from self-employment in a tax year; the tax year runs from 6 April to 5 April. You may register earlier if you choose. The £1,000 is the trading allowance; it is earnings, not profit, so a £1,500 turnover with £900 of costs still crosses it. You may also need to register for other reasons, for example if you have untaxed foreign income.
The deadlines
| Step | Deadline for the 2025-26 tax year (GOV.UK) |
|---|---|
| Register for Self Assessment | 5 October 2026 |
| Paper tax return | 31 October 2026 |
| Online tax return | 31 January 2027 |
| Pay the tax owed | 31 January 2027 |
| Second payment on account, if they apply | 31 July |
GOV.UK says you must register by 5 October if you have not sent a return before. If you register late and have not paid everything by 31 January, you may get a penalty for failing to notify, based on the tax unpaid.
Worked timeline (illustration only)
Bola starts selling small chops at weekend events in November 2025 and has earned £3,200 by 5 April 2026. That falls in the 2025-26 tax year. She registers in June 2026, well before 5 October 2026, keeps her receipts, and files online in December 2026, paying by 31 January 2027.
Sole trader or company?
Registering as a sole trader is the quickest way to start: no Companies House filing, no company accounts, and profit is simply your income. The trade-off is that you are personally liable for the business's debts. A limited company separates the two but adds filing duties and costs, including a £100 software incorporation fee from 1 February 2026 according to Inform Direct's summary of the new Companies House fees. Many people start as sole traders and incorporate later; see sole trader or limited company.
How to register
- Choose a business name, or trade under your own name. GOV.UK says either is fine.
- Register for Self Assessment as a sole trader on GOV.UK. You will need your National Insurance number and contact details.
- Wait for HMRC to send what you need to file; allow time before 31 January.
- Keep records from the first day: sales, costs and receipts. GOV.UK says you must keep records once you start trading.
- File each return; HMRC works out your Income Tax and National Insurance from your profits.
Your visa first
Registering with HMRC is a tax step; it does not give you permission to be self-employed. Whether you may trade depends on your immigration status. A Skilled Worker, for example, can work up to 20 hours a week in another job or their own business alongside the sponsored role, with conditions on the type of work, and GOV.UK says being a sole trader is allowed within that. Check your own route before you start; see starting a business on a dependant visa and self-employment after ILR.
What records to keep
GOV.UK says the records are used to work out your profit or loss. In practice keep:
- every sale: date, customer, amount and how paid (cash, card, transfer);
- every cost: receipts for stock, travel, equipment, phone and any share of home costs you claim;
- bank statements for the account you use for the business;
- money received from or sent to Nigeria for the business, with the exchange rate you got.
A separate account for the business makes this far easier: one statement becomes most of your record.
Other things that may apply
- VAT: registration is required once taxable turnover passes the threshold; GOV.UK's sole trader page does not give the figure, so check the current threshold on the VAT registration page. You may register voluntarily to reclaim VAT on costs.
- Foreign income: if you also earn in Nigeria (rent, a salary, a business), it may need to go on your return; see declaring Nigerian income.
- Employing people: you pay their National Insurance and run payroll.
- Penalties: GOV.UK lists £100 for a late return, then daily penalties after three months.
This is general information about HMRC's published rules, not tax advice.
When you stop trading
If you stop being self-employed, tell HMRC so it does not expect further returns, and file a final return for the last tax year in which you traded. Keep your records after you stop; HMRC can ask about past years.
Where Pryme fits
Keeping business money apart from personal spending makes records easier. A Pryme Business Account gives a sole trader a separate place to receive and pay, with Invoicing for sending invoices, and the Finance agent prepares a summary for a person to check before filing.
Questions people ask
When do I need to register as self-employed in the UK?
GOV.UK says when you earn more than £1,000 from self-employment in a tax year. Register by 5 October after that tax year ends.
What is the deadline to register for Self Assessment for 2025-26?
5 October 2026, according to GOV.UK.
Can I trade before I register?
Yes. GOV.UK says you can start trading without registering, but you must keep records from the start.
Does registering with HMRC mean my visa allows self-employment?
No. HMRC registration is a tax step. Your visa conditions decide whether you may be self-employed.
Sources
- GOV.UK: Set up as a sole trader (updated 5 Oct 2026) · accessed Oct 2026
- GOV.UK: Register for Self Assessment (updated 8 Oct 2026) · accessed Oct 2026
- GOV.UK: Self Assessment deadlines · accessed Oct 2026
- GOV.UK: Self Assessment penalties · accessed Oct 2026
- GOV.UK: Skilled Worker visa, taking a second job · accessed Oct 2026
- Inform Direct: Companies House fee changes from 1 February 2026 (29 Dec 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.