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
HMRC ask you to 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. Check the current deadline on GOV.UK before you rely on it.
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 set proportion into a separate account and forget it exists. How much you'll owe depends on your income, expenses and allowances, so work out the right proportion for you — or ask an accountant — rather than guessing. Setting it aside as you go is what stops January 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.
Please note: This page is general information to help you get started, not legal, tax, insurance or regulatory advice. What applies to you depends on your circumstances, and the rules change — check with the relevant authority or a qualified professional before you act on it.