Tax Rgistration

pamstretched

Currently pay tax through the PAYE system
Employer has advised our jobs are at risk so I am trying to research in advance just in case the job goes.
I believe for self employment I need to register for a self employed number
Is this just for sole traders or do those opening as a ltd company need to register as well

Thanks

chrismac1

First, you only register when you start trading, normally treated as your first sales order or cash receipt if it is a cash business such as a shop.

Limited Company Directors - there is some controversy here. Both the HMRC website and the DirectGov website say that all directors must register for self-assessment. However, on another website a controversy raged for some months between the accountancy posters who said there was nothing in the Taxes Acts or Companies Acts which said this, and the HMRC folks who said there was. Ultimately this became a "show me the part of the Statute which says this" challenge to the HMRC folks at which point the thread - which was a long one - suddenly dried up.

So in my view - in the absence of someone pointing me in the direction of a specific piece of legislation which says otherwise - Company Directors do NOT have to register for self-assessment simply by virtue of being company directors.

pamstretched

Thanks
Are there instances where you can apply for the number in advance?
I am applying for work - employee and contractor whichever comes up first
Some of the contract applications require proof that you going to pay your own tax if your not a full Ltd Co.

chrismac1

Yes you can apply anytime. Please be aware that for reasons best known to HMRC - after all 90% of folk asking for a UTR will be doing so to pay more tax - it can take months sometimes to get a UTR issued. 12 weeks in the case of one client I have who was never going to do anything other than pay more tax. I only wish George Osborne could get to know who the folks are who hold up these things!