Going self-employed as a tradesperson: the first 90 days

Going out on your own is the best pay rise most tradespeople ever give themselves — and the first three months are where you either set it up right or spend the next two years untangling it. You don't need an MBA. You need to get a handful of boring things sorted early so you can get on with the work.

Here's what to do in your first 90 days, in roughly the order it matters.

Week 1–2: register and get legal

Tell HMRC you're self-employed. You need to register for Self Assessment. The official deadline is by 5 October after the end of the tax year you started trading — but don't wait, do it early so it's off your list. Registering is free and takes minutes online.

Decide your structure — for now. Most people start as a sole trader because it's the simplest way to trade and you can change later. Whether you'd be better off as a limited company depends mostly on your profit and your liability exposure — worth understanding before you assume, so read sole trader vs limited company for tradespeople. Starting sole trader and incorporating later is a completely normal path.

Sort your insurance. At a minimum most trades want:

Public liability — covers you if you damage a customer's property or injure someone. Customers and main contractors will often ask for it.
Tools cover — a van break-in shouldn't end your business.
Employers' liability — legally required the moment you take anyone on, even casually.

Get the right cover for your trade before the first job, not after the first accident.

Week 2–4: set up the money

Getting the money side right early saves you a world of pain at tax time.

Open a separate bank account for the business. It doesn't have to be a business account at first — just separate, so your takings and your tax don't get muddled with the weekly shop.
Keep every receipt. Materials, fuel, tools, phone, part of your van — these are expenses that reduce your tax bill. Photograph them as you go; shoebox-in-March is how people overpay.
Set aside tax from day one. A safe rule of thumb is to move 25–30% of every payment into a separate pot the moment it lands. Come January you'll have the money ready instead of a panic. (Your actual rate depends on your profit — this is a buffer, not a calculation.)
Register for the CIS if you'll work for other contractors. Under the Construction Industry Scheme, a contractor deducts tax from your pay before you get it — 20% if you're CIS-registered, 30% if you're not. That's real money, so register. You reclaim any over-deduction through your Self Assessment.

Week 3–8: get the work in

You can be the best fitter in town and still starve if nobody knows you exist. Early on, work comes from:

Everyone you already know — old employers who'll sub you work, mates in other trades who pass on jobs, family. Tell them all you've gone out on your own.
A few good reviews — do your first handful of jobs brilliantly and ask for a Google review. Local trades live and die on those.
Being findable and fast — a simple Google Business Profile, a phone you answer, and a quote that goes out the same day. Speed wins early work more than anything.

The last point matters more than most realise: when you're on the tools all day, the jobs you lose are often the calls you couldn't answer. Have a plan for that from the start — see why you're losing jobs to missed calls.

Week 4–12: price yourself properly

The classic new-starter mistake is pricing too low out of nerves. You're not just selling hours — you're covering your van, tools, insurance, pension, holidays, sick days and the unpaid evenings doing quotes.

Work out your true day rate (not your old employed wage divided by days).
Decide whether you'll work on a day rate or price work.
Always take a deposit and send a proper written quote — the habits that stop you getting stung later.

Keep an eye on the VAT threshold

You don't register for VAT on day one — you only have to once your turnover passes the VAT registration threshold (a rolling 12-month figure; it was £90,000 as of the 2024/25 year — check the current number). For a sole trader doing domestic work it can actually make you look 20% more expensive than an unregistered rival, so it's a real crossroads when you approach it. Just keep half an eye on your running turnover so it doesn't sneak up on you.

The 90-day checklist

Registered as self-employed with HMRC
Chosen a structure (sole trader to start is fine)
Public liability + tools insurance in place
Separate bank account open
Keeping every receipt
Setting aside 25–30% of income for tax
Registered for CIS (if working for contractors)
Google Business Profile live, asking for reviews
Know your true day rate
Taking deposits + sending written quotes
Watching turnover against the VAT threshold

Get those eleven things done and you're ahead of most people in their first year — not just working, but running a business.

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