Registering with HMRC, simply explained
Tax is the part of self-employment that puts most people off — which is a shame, because for a typical micro provider it's genuinely straightforward. Here's what registering with HMRC actually involves, without the jargon.
When you need to register
You must register for Self Assessment by 5 October following the end of the tax year in which you started trading. In practice: don't wait. Registering early costs nothing, takes minutes online, and means your first tax return isn't also your first scramble.
What you'll need
Registering as a sole trader needs little more than your National Insurance number, contact details and a short description of what you do ("self-employed care and support" is fine). HMRC will send you a Unique Taxpayer Reference — keep it safe, you'll use it every year.
Every time an invoice is paid, move a quarter of it into a separate account and forget it exists. For most micro providers that comfortably covers Income Tax and National Insurance — and January stops being scary.
Keep records as you earn
Your return is only as easy as your records. Keep every invoice and every business expense — insurance, mileage, training, phone — logged as you go, sorted by HMRC category. Do that, and a Self Assessment return is an evening's work, not a lost weekend. This is exactly the record-keeping MicroProviders Care will handle for you at launch, including a running estimate of the tax you're putting aside for.
Making Tax Digital is coming
Making Tax Digital for Income Tax is being phased in: it applies to self-employment income over £50,000 from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. Most micro providers won't hit those thresholds straight away — but keeping digital records from day one means that if you do, quarterly updates are a non-event rather than an upheaval.