Self assessment about sole trader and split year treatment

Hi HMRC I have a few questions hope you can help. I came to UK on 26 Jun 2021 and moved into the house since 12 July 2021 (it’s renting property while before that I was living in Airbnb). Before coming to UK, I had been worked for HK company until 31 May 2021 and then started working as freelancer (sole trader) for the same company from 1 June 2021 under service contract base till now. 1. May I know when should be the date of split year treatment ? Is it 11 July 2021? 2. If question 1 answer is yes, so my taxable income should be counted from 12 July 2021 to 5 April 2022? Or it should be counted from my arrival date to UK which is 26 Jun 2021? 3. For my case, should I fill in SA100, SA103, SA109? 4. I have the UTR and NI number already but I haven’t registered NIC2. Do I need to fill in the form CWF1 ? Thank you!

Hi,

HMRC cannot advise you on the split year date as that is for you to decide. see further guidance at:

RDRM12030 - Residence: The SRT: Split year treatment: When will split year treatment apply 

Yes you need to file SA100,SA103 AND SA109 but you will need to use commercial software as you cannot file the SA109 online with HMRC software. CWF1 is required to register for National Insurance.

Thank you.

Sorry that I have few more questions.. 1. May I know is it mandatory to play NI Class 2 as a self employed? (My annual income in 2021-22 over £6,515) 2. As a sole trader, my employer offers me the specific amount of allowance (to cover the monthly expenses) additional to the salary every month. Should the allowance be considered as taxable income? Thank you!

Hi,

Yes, it is mandatory for self employed income over £6515.  

The allowance, if taken, should be classed as taxable income so is part of your turnover and then you can deduct the expenses.

Thank you.