In the UK, individuals earning under £1,000 from their business do not necessarily need to register with HM Revenue and Customs (HMRC) for Self Assessment due to the “trading allowance.” Introduced to simplify tax obligations for small or casual traders, the trading allowance allows individuals to earn up to £1,000 in gross income (not profit) from self-employment without needing to declare it or register as self-employed. However, if your gross income exceeds this threshold or if you have already registered and are filing for other reasons (like being both employed and self-employed), you must file a tax return. Additionally, even if earnings are below £1,000, keeping accurate records is crucial for clarity on your financial activities. If you plan to grow your business and earn more, early registration establishes your business formally, helping with financial tracking and credibility. Always consider individual circumstances and seek professional tax advice if necessary.