You should register as self-employed with Inland Revenue as soon as you start trading. Failure to do so could result in a penalty of £100.
Anyone can set up as a sole trader, although certain types of work may require you to register or apply for a special license. Examples of these include restaurants, childminders, cab drivers and street traders.
For more information on the statutory and legal requirements of setting up as a sole trader or as self-employed read more...