Please help- Regester self employed subcontractor in construction (Electrician)

Legacy_user

Hi,

My child is wanting to Register as a self-employed subcontractor in construction in the near future. Previously employed so never been required to send tax returns in the past.

Firstly, we know to register as Self Employed to get a Unique Tax Reference Number (UTR) to give to his employer to ensure 20% tax is taken from his weekly salary otherwise he has to pay 30%.

Secondly, register with CIS when UTR Number arrives in post.

Please can someone provide the correct link to register as Self employed subcontractor, one that we can actually click on?

We have done our homework but find it difficult to find the correct link. Can see one titled Stopping Self-employment but not one for Starting Self-employment.


Thank you for your time.

Pennywise

Self employment and CIS are two different things.

First you register as self employed to get the UTR, and yes, being self employed does mean being a business.

Once you have the UTR, you register for CIS scheme.

Until you have registered for CIS, his "customers", i.e the firms engaging him, will have to deduct 30% tax, simply because their link with HMRC won't know about him. Once he's registered for CIS, the tax deduction will change to 20% once the change filters down from the HMRC system to his customer's system.

System

Thanks for taking the time. I understand what you say, however can you guide us or provide the actual link that will take us to Register as Self-employed. Need to get all the facts ready for starting after Christmas.

comeandgo

Your child will be operating a business, he will have to think of a name for it, he will need insurance, he will need to keep records and no HMRC do not make things difficult so you need an accountant.

System

Thank you for your advice,
Contractor will be paying tax, insurance and providing a company van. We automatically thought insurance would be covered by the Contractor's company insurance however need to check this in advance.

Is there other Insurances that he needs as a subby for example Public Liability, or is this covered under the Contractor's Public Liability Insurance. Just want to prepare in advance.

Thanks.

System

UPDATE
I found the link to HMRC Register as Self Employed. Thank you for all of the advice.

https://www.citizensadvice.org.uk/work/self-employed-or-looking-for-work/self-employment-checklist/

the link is
https://online.hmrc.gov.uk

Tammykitty

You will also need to submit a tax return each year (and potentially get a tax refund!) each year.


Keep a record of all expenses - PPE, miles travelled, insurance, etc

booksurr

time for more reading? Presumably he will be a sole trader? I don't think it will be worthwhile him being a Ltd Company initially.

https://www.gov.uk/government/collections/self-employment-forms-and-helpsheets