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Posted Sun, 12 Jun 2022 11:34:31 GMT by Keung C
Hi, I have finished my SA return on April 2022 of tax year 2021-2022. And I would like to start my new business in August 2022, should I register in sole trader through online (form CWF1) in August 2022(even I earn GBP 0 because I just start)? Or wait until next tax year 2022-2023 to tell HMRC which I am self-employed through SA return? For other question, if I earn less than GBP 1000, could I still register as a sole trader and pay voluntary NI class 2? Thanks for advise and many thanks for great help.
Posted Tue, 14 Jun 2022 07:56:35 GMT by HMRC Admin 19
Hi,

You can see guidance here:

Register for Self Assessment

Thank you
Posted Wed, 15 Jun 2022 11:40:21 GMT by Keung C
Hi, Thanks for your reply. After studied the guidelines, in my understanding, should I register sole trader through self-assessment before 5 October 2023 (i.e. between 5 April 2023 to 5 October 2023) if I set up my business on August 2022? Am I correct? Many thanks
Posted Wed, 15 Jun 2022 14:48:36 GMT by HMRC Admin 17

Hi,
 
Yes. You need to register before 5/10/2023 to avoid any penalties  .

Thank you.
Posted Thu, 30 Jun 2022 03:23:17 GMT by edercontato4
could I still register as a sole trader and pay voluntary NI class 2?
Posted Thu, 30 Jun 2022 14:14:19 GMT by HMRC Admin 26
Hi,

You can register as Self-Employed using form CWF1. However you will not be able to do this until the Self-Employment has started. You will be able to pay voluntary class 2 for the 2022/23 tax year once that tax return has been completed. If you are above the threshold to automatically pay class 2.

Thank you.
 
Posted Wed, 06 Jul 2022 13:06:19 GMT by v.verbitski
Thanks for the thread, was looking for this information
Posted Sun, 10 Jul 2022 09:58:20 GMT by Keung C
Hi HMRC staff, Thanks for your information. And I would like to ask should I need to fill form CWF1 first when I started the business on August 2022, after that fill SA tax return 2022/23 (2 steps) or just tell HMRC I am self-employed through SA return at once in tax year 2022/23 before 5/10/2023 (one step)? Thanks for advise.
Posted Tue, 12 Jul 2022 10:58:06 GMT by HMRC Admin 17

Hi,
 
You should complete the CWF1 before the tax return, as if you are not registered for Self-Employment first,

you may not be charged the correct amount for Class 2 National Insurance.

Thank you.
Posted Wed, 27 Jul 2022 10:36:08 GMT by Keung C
Hi HMRC staff, Thank you for your reply. And I have more question. Should I still need to complete CWF1 if I earn below GBP1000 with using tax-free trading allowance? Thank you.
Posted Thu, 28 Jul 2022 12:45:41 GMT by HMRC Admin 25
Hi Keung C, 

Please see the following link and the heading for 'Self-Employed' as there are still some reasons why you should register even if you will earn below the threshold:

Tax-free allowances on property and trading income

Thank you 



 
Posted Wed, 17 Aug 2022 10:54:13 GMT by Keung C
Hi HMRC staff, Thanks for your reply. And if I won't claim anything and do not plan to pay voluntary Class 2. Should I need to complete the CWF1 if I earn less than GBP 1000 with using Tax-free allowance? or just tell HMRC in my SA return 2022/23 in the additional part? Thanks for advise.
Posted Thu, 18 Aug 2022 15:46:30 GMT by HMRC Admin 2
Hi,

If your self-employed income is less than the £1000 Trading Allowance, you do not have to complete a Self Assessment return, unless any of the following apply:                              
  1. You’ have made a loss and want to claim relief on a tax return (check helpsheet 227 for more information about losses)
  2. You want to pay voluntary Class 2 National Insurance contributions to help qualify for some benefits
  3. You want to claim Tax Free Childcare for childcare costs based on your self employment income
  4. You want to claim Maternity Allowance, based on your self-employment                                                              
Tax-free allowances on property and trading income

Thank you.
Posted Fri, 19 Aug 2022 18:28:34 GMT by Keung C
Hi HMRC staff, Thanks again for your information. And for my understanding, if my self-employed income is less than the £1000 Trading Allowance and not applicable for those 4 points from above. Then I needn't re-register online by filling the form CWF1. (because I have filed a tax online before) Am I correct? Many thanks for advise.
Posted Mon, 22 Aug 2022 13:39:41 GMT by HMRC Admin 17

Hi,
 
That is correct .

Thank you.
Posted Fri, 09 Sep 2022 05:48:04 GMT by Alice Miller
I would like to know if I can get a tax credit for purchasing a solar panel power system now. 

 
Posted Mon, 12 Sep 2022 13:57:46 GMT by HMRC Admin 17

Hi,
 
Details of the tax relief that can be claimed by businesses re:  the purchase of solar panels is provided at: 

CA22335 - Plant and Machinery Allowances (PMA): Solar panels  .

Thank you.

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