Direct answer: No, sole traders do not register with Companies House. Companies House is only for limited companies and other incorporated businesses. As a sole trader, you register with HMRC for Self Assessment instead, so you can report your income and pay the right tax.
If you are starting out on your own — freelancing, trading, consulting, or running a small service business — this is one of the first questions that causes confusion. After all, every limited company you deal with seems to have a Companies House number, so it is natural to wonder whether you need one too. The short answer is no, and understanding why will save you time, worry, and possibly a costly mistake.
Why sole traders do not register with Companies House
Companies House is the UK registrar for incorporated businesses. When you form a limited company, Companies House creates a separate legal entity — a company that exists in its own right, can own assets, take on debts, and be sued. That company gets a company number and must file annual accounts and a confirmation statement.
A sole trader is the opposite of this. You and your business are legally the same person. There is no separate company to register, no company number to issue, and no annual filing to make to Companies House. You keep all the profits, you make all the decisions, and — importantly — you also carry all the liability. If the business owes money, you personally owe it.
This is also why the setup is so much simpler and cheaper than forming a company. There is no incorporation fee, no formation paperwork, and no public register entry for your business.
What you must register instead: HMRC Self Assessment
Instead of Companies House, your one essential registration is with HMRC. If your gross self-employed income is more than £1,000 in a tax year, you must register for Self Assessment. Income of £1,000 or less is usually covered by the trading allowance, so you may not need to register for that income — but check the rules if you have other reasons to file a return.
Here is how registration works, step by step:
- Register online through GOV.UK. Choose the option for someone who is self-employed. You will need your National Insurance number, your name and address, the date you started trading, and a description of what your business does.
- Set up a Government Gateway account if you do not already have one, and keep your user ID safe — you will need it every year.
- Wait for your Unique Taxpayer Reference (UTR). HMRC posts this 10-digit number to you, usually within about 10 to 15 working days. You cannot file a return without it, so register early rather than leaving it to the last minute.
- Keep records from day one. Track every sale, invoice, receipt, and business expense. Good records make your tax return far easier and help you claim every allowable expense you are entitled to.
- File your return and pay by the deadlines in the table below.
Sole trader vs limited company: who registers where?
The table below sums up the key difference at a glance.
| Sole trader | Limited company | |
|---|---|---|
| Register with Companies House? | No | Yes — the company is incorporated there |
| Register with HMRC? | Yes — Self Assessment as self-employed | Yes — Corporation Tax, plus PAYE if it employs staff |
| Legal status | You and the business are one and the same | The company is a separate legal entity |
| Annual filings | One Self Assessment return a year | Annual accounts and a confirmation statement (£50 fee) |
| Liability | Unlimited — personal assets are at risk | Generally limited to what is invested |
Key dates every sole trader must know
Missing a deadline is the most common and most avoidable sole trader mistake. Put these in your diary now:
| Deadline | What it is |
|---|---|
| 5 October after the tax year you started trading | Register for Self Assessment with HMRC |
| 31 January after the tax year ends | File your online Self Assessment return and pay the tax due |
| 31 January and 31 July | Payments on account, if HMRC asks you to make them |
For example, if you started trading in August 2026 (in the 2026/27 tax year), you must register by 5 October 2027 and file your first online return by 31 January 2028. Registering late can lead to a penalty if it causes you to file or pay late, so there is no benefit in waiting.
Worked example: what tax might a sole trader pay?
Imagine Sara, a freelance designer who makes £30,000 of profit in a tax year. Using the 2026/27 personal allowance of £12,570, her taxable profit is £30,000 minus £12,570, which is £17,430. Income Tax at the 20% basic rate on that amount comes to £3,486.
She would also pay Class 4 National Insurance on profits above £12,570. At the 6% main rate, that is 6% of £17,430, or about £1,046. Her total bill in this simplified example is therefore roughly £4,532, before any payments on account. This is an illustration only — your own bill depends on your total income, expenses, and personal circumstances — but it shows why setting money aside from every invoice matters from the start.
When you WOULD deal with Companies House
There are a few situations where Companies House does enter the picture:
- You form a limited company. If you later decide the limited-company route suits you better — for example, because your profits have grown or you want limited liability — you will register the company with Companies House. Our guide explains how to register a limited company in the UK, step by step.
- You become a director of a company while still trading as a sole trader on the side. The company is registered with Companies House; your sole trader work still is not.
- You form a limited liability partnership (LLP). LLPs, unlike ordinary partnerships, are incorporated and registered with Companies House.
Note that an ordinary business partnership is not registered with Companies House either. The partners register with HMRC, much like sole traders do.
Trading names, VAT, and other registrations to check
Not registering with Companies House does not mean you have no other rules to follow. Check these too:
- Your trading name. You can trade under your own name or choose a business name, but a sole trader name must not include “Limited”, “Ltd”, “LLP”, or “plc”, and it must not be misleading or too similar to an existing trademark. You must show your own name and your business name on invoices and official paperwork.
- VAT. If your taxable turnover goes over £90,000 in a 12-month period, you must register for VAT. Below that, registration is voluntary.
- Making Tax Digital for Income Tax. From April 2026, sole traders with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC, with the threshold falling to £30,000 from April 2027. Check whether this applies to you.
- Licences and insurance. Depending on your trade, you may need a licence from your local council or a professional body, and public liability or professional indemnity insurance is strongly recommended even though it is not legally required for most sole traders.
- Employing staff. If you take on employees, you must register as an employer with HMRC and run PAYE — but that still does not involve Companies House.
Common mistakes to avoid
- Waiting until the 5 October deadline to register. Your UTR arrives by post and takes time. Register as soon as you start trading.
- Confusing a UTR with a company number. Your UTR is your personal HMRC identifier. It is not a Companies House number, and no client should ask you for one.
- Putting “Ltd” in your business name. Only a registered limited company may use it. Using it as a sole trader is misleading and against the rules.
- Assuming no registration means no tax. Not registering with Companies House is not the same as not needing to pay tax. HMRC registration and the annual return are still compulsory above the £1,000 trading allowance.
Frequently asked questions
Do sole traders get a Companies House number?
No. Companies House numbers are only issued to incorporated companies. As a sole trader you get a Unique Taxpayer Reference (UTR) from HMRC instead.
What happens if I do not register with HMRC?
If your self-employed income is over £1,000 in a tax year and you fail to register, you may face a penalty based on the tax due, especially if your return or payment is late.
Can I switch from sole trader to limited company later?
Yes, at any time. You form the company with Companies House, move the business across, tell HMRC you have stopped trading as a sole trader, and send a final Self Assessment return for your sole trader income.
Do I need a business bank account as a sole trader?
It is not legally required, but it is strongly recommended. Keeping business money separate from personal spending makes bookkeeping, tax returns, and spotting problems far easier.
Conclusion
So, do sole traders register with Companies House? No — and that is good news, because it keeps starting up simple. Your real registration is with HMRC for Self Assessment: register by 5 October after the tax year you start, keep clean records, and file by 31 January. For the official steps, see the GOV.UK guide linked below.
Source: GOV.UK — Set up as a sole trader
