https://www.gov.uk/working-for-yourself

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Working for yourself

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If you start working for yourself, you’re classed as a sole trader. This means you’re self-employed - even if you haven’t yet told HM Revenue and Customs (HMRC).

 

Running a business

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You’re probably self-employed if you:

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• run your business for yourself and take responsibility for its success or failure

• have several customers at the same time

• can decide how, where and when you do your work

• can hire other people at your own expense to help you or to do the work for you

• provide the main items of equipment to do your work

• are responsible for finishing any unsatisfactory work in your own time

• charge an agreed fixed price for your work

• sell goods or services to make a profit

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Many of these also apply if you own a limited company but you’re not classed as self-employed by HMRC. Instead you’re both an owner and employee of your company.

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You can be both employed and self-employed at the same time, for example if you work for an employer during the day and run your own business in the evenings.

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You can check whether you’re self-employed:

• online

• by phone

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Selling goods or services

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You could be classed as a trader if you sell goods or services. If you’re trading, you’re self-employed.

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You’re likely to be trading if you:

• sell regularly to make a profit

• make items to sell for profit

• sell items on a regular basis, either online, at car boot sales or through classified adverts

• earn commission from selling goods for other people

• are paid for a service you provide

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If you only occasionally sell items or rent out property (for example through auction websites or short-term rental apps), check if you need to tell HMRC about this income.

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Contact HMRC for advice if you’re not sure whether you’re trading.

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Registering as self-employed

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If you’re self-employed, you may need to set up as a sole trader.

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