Add your self-employment business

A self-employment business is the container for one sole-trader trade: its trading name, start date, accounting basis and VAT status. Set one up with the short Add Business wizard, then start recording transactions against it. Nothing is sent to HMRC when you create a business.

What this is

A self-employment business is how the app tracks one sole-trader trade. It holds the trade's trading name, the date you started trading, your accounting basis and your VAT status, and it becomes the home for all the income and expenses you record for that trade. Those recorded transactions are what the app uses to build your quarterly figures for HMRC automatically, so getting the business set up first is the foundation for everything else.

This guide is for sole traders. If you let property instead, see Add your first property. If you do both, see Choosing your income type.

Before you start

• You need to be signed in.
• The self-employment area appears when your income type includes self-employment. If you cannot see it yet, see "If something goes wrong" below.
• On the Free plan you can have one income source in total: one property or one self-employment business, not both. Running property and self-employment together needs MTD Lite (see Plans and pricing).

Add a business, step by step

1. Open the self-employment area from the sidebar. The nav item is labelled Businesses if self-employment is your only income type, or Self-Employment if you have both property and self-employment. Either way it opens the /self-employment page.
2. Start the wizard. On the businesses page click Add Business in the header. If you have not added one yet, the empty state shows an Add Your First Business button instead: click that.
3. Step 1: Business identity. Enter your Trading name (for example "Smith Consulting"). This is required. Description is optional, so you can leave it blank.
4. Step 2: Trading start date. Pick the date you started trading from the calendar. This is required, and future dates are blocked because the trade has already begun. Use the date you took on your first client or job.
5. Step 3: Accounting basis. Choose Cash (already selected for you) or Accruals. Most sole traders use Cash. See the note below if you are unsure.
6. Step 4: VAT registration. Leave it on Not VAT-registered (the default), or choose VAT-registered and enter your VAT number (for example GB123456789).
7. Save. Click Save business. You are taken back to the businesses page with your new business listed.

Note: Nothing is sent to HMRC when you save. The business record lives in the app, and your figures only reach HMRC when you submit a quarterly update later.

Tip: If you have only ever had property up to now, creating your first self-employment business updates your income type so the self-employment surfaces appear across the app. No extra step is needed.

Cash or accruals

• Cash basis records income when the money actually comes in and expenses when they actually go out. It is simpler, it is the default in the app, and it is what most sole traders use.
• Accruals basis (also called traditional accounting) records income and costs when they are earned or incurred, regardless of when the money moves.

Which basis you are allowed or required to use can depend on your turnover and circumstances. The app does not decide that for you, so if you are not sure, check with HMRC or your accountant.

After you have added it

• Record your income and expenses. Open the business, then use Add Transaction. Only the date, amount and category are required: a description and a receipt are always optional. See Recording income and expenses.
• Already keep a spreadsheet? Use CSV import. Each row is brought into the app as its own transaction, so your records live in the app and your quarterly figures are built from them. See Import transactions from CSV.
• Need to change details later? You can edit the trading name, description, accounting basis and VAT status, or delete the business. See Manage your SE business.

If something goes wrong

• Clicking Add Business opens an "Income Source Limit Reached" dialog. The Free plan is limited to one income source in total (one property or one self-employment business). You already have one. Upgrade to MTD Lite for unlimited businesses, or remove the existing income source first. See Plans and pricing.
• The Self-Employment or Businesses section is missing from the sidebar. Your income type does not include self-employment yet. Creating your first self-employment business sets your income type so the self-employment pages appear across the app.
• You cannot pick a start date in the future. Future trading start dates are blocked because the trade has already started. Pick today or an earlier date.
• You see "Please enter your VAT number, or unselect VAT-registered." You chose VAT-registered but left the VAT number blank. Enter your VAT number (for example GB123456789), or switch the option back to Not VAT-registered.
• Only one business shows in HMRC test mode. The HMRC sandbox returns only one self-employment business. This is an HMRC sandbox limitation, not a problem with your account. With a live HMRC connection your real businesses appear.

Frequently asked questions

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