Self employment - registration and WHT issues

Dear HMRC team, I plan to start working as a sole trader (analytical provider) from January 2024. Can I register in self assessment before providing services? My customer is not in the UK. It is based in the EU. He asks me to provide CoR of the UK to avoid WHT. However, I will be the resident (183 day presence in the country) only in February. Could I request CoR in January or after registering/ receiving the unique tax code? If not, could I request it in February or only after paying the taxes in July? You help is much appreciated. Thank you!

Hi
Yes you can register for self assessment now.
You can also apply for a certificate of residence but if may be a letter of confirmation is issued until your actual 23/24 tax return has been submitted.

Thank you for the quick response. One more question. If the EU country's regulator takes 20% WHT for the specific period (until I do not provide them the CoR), is it deducted for the UK tax purposes? I mean - I have revenue 20,000 GBP, EU takes 4,000, what is the tax base in the UK prior the allowance? 16,000 or 20,000? Thanks.

To clarify, the EU state is Poland. Btw, is the process for letter of confirmation application the same as CoR?

Hi Olbel,
You will declare the £20000 as income and claim the £4000 as Foreign Tax Credit Relief.
All foreign income must be converted to sterling.
Yes, the letter of confirmation is the same application process as CoR.
Thank you. 

Hi HMRC Admin 25, Thank you. 1. But are £4000 of Foreign Tax Credit Relief are deductible for the tax purposes in the UK? 2. While applying for CoR, the system asks me indicate the foreign income and the entity which payed. However, I have not received any income yet. Should I indicate this entity and put £0 as the paid amount?

Hi Olbel

1. Any Foreign Tax Credit Relief claimed will be shown in your tax calculation as a credit against the UK tax charged on your foreign income.
2. You should wait until you have actually received the anticipated  foreign income before applying for a CoR.                                                                  
Please see INTM162020 - UK residents with foreign income or gains: certificates of residence: information to be supplied with a request

Thank you