If you are a sole trader, you need to tell HMRC about it and this can be done using a CWF1 form. In case you have registered and want to re-register yourself even then this for is of use. This registration can also be done online.
What is CWF1 form and when to submit it?
CWF1 lets you register or re-register for self-assessment with HMRC. The deadline to submit this form is 5th October in the second year of your self-employment. HMRC provides a lot of time for you to submit this form before the deadline so make sure you avail this time to register for self-assessment and to avoid any fine and penalty.
Self Assessment (SA1) or Sole trader (CWF1)
In case you have registered yourself using an SA1 form, this means that you have registered your self only for submitting self-assessment and self-assessment is used to submit taxes related different reasons. On the other hand, if you have registered your self-using a CWF1 form that means you have registered your self with HMRC as a self employed and this means you are doing your own business.
What if I am registered with SA1 and now started my own business.
In case you have registered your self with HMRC for self-assessment for any reason and later on you have started your business, you now need to submit CWF1 to tell HMRC that you are now self employed and have started your own business.
I have my UTR with SA1 and now I have started my own business.
When you would register with HMRC using SA1, you must be getting your UTR number but in case later on you have started your own business and you are a self employed you still need to submit CWF1form to inform HMRC about your self-employment so that can update your record with them.
What do I need to include on a CWF1 form?
The form will ask you for your personal details
- National Insurance number
- The nature of your self-employed business.
This includes the business name you plan to trade under, and the address where the business will operate.
What will happens after submitting the CWF1 form?
HMRC will issue you with a Unique Taxpayer Reference (UTR) number, which you’ll need each time you submit a tax return.
In order to submit claim tax relief for allowable expenses you should be keeping the records up to date and maintain a good bookkeeping record which will allow you to show proper income and expenses to HMRC.
When not to register this form
You cannot register this form in case of
- a new partnership, fill in form SA400.
- as a partner, in a partnership, fill in form SA401.
- as a director, fill in form SA1.
- partners who are not individuals, fill in form SA402.
If you are looking for an accountant to help you with your queries related to your business accounts, Call at 020 35765107 or send a message to book a free consultation.
Note: It must be noted that the information provided in all our blogs are solely for the awareness purposes and are designed with the intention to create an ease for the reader to understand the rules and their importance. However, it should never be considered as an ultimate replication of rules. RezEx Accountants (RezEx Ltd) does not own any responsibility for any unpleasant event that may arise due to misinterpretation of a specific part or whole of the information.
