Self assessment tax help

Doom906

Hello I am a bit confused if I have to pay tax yet, I started working as a sole trader in mid April 2018.
From what I have read if I started after 6th of April 2018 then I will have to pay my 2018/2019 tax at the end of January 2020? So I don't have to do a self assessment at the end of this month? Is that correct?
Also I have worked for the same company since April 2018 and will be with them for a while they sort the %20 tax out before they pay me so how will that work when it comes to do a tax return?
Thanks.

Dazed_and_confused

If you haven't been sent a 2017:18 return to complete then a business you started in 2018:19 isn't a reason to need to complete one.

If it is CIS tax then you can claim a credit for this on the self employment part of the return you will need to complete after April 2019 (and before February 2020).

Dazed_and_confused

I think you mean started after 5th of April, not 6th of April.

Doom906

Thanks for the reply.
Yeah I meant 5th of April.
It is not a business I started I am working as a painter and decorator for that company if that makes any difference?

Dazed_and_confused

If it is under CIS (construction industry scheme) then you are running your own business. That is why you will need to complete a Self Assessment return.

00ec25

Doom906 wrote: »

It is not a business I started I am working as a painter and decorator for that company if that makes any difference?

no, by your own admission you are a sole trader. That means you are running a business... as a sole trade painter/decorator

as is the norm with such building trades, you fall within the Construction Industry Scheme (CIS) and so "suffer" 20% (in your case) tax deduction by the main contractor for whom you do the work as their sub-contractor.

do you not have any more experienced mates who explain the basics to you? They really ought to teach this stuff as part of an apprenticeship these days

Doom906

Ah I see thanks.
I can ask some of the other painters when I can get back to work (broken arm at the mo)
I was just confused when I had to do the self assessment, which I have to do after April 2019?

Tammykitty

Yes, you are not required to do a self assessment until January 2020, for the tax year ended April 2019.


The good news is that most CIS workers usually get a small rebate instead of owing tax, or will owe very little at least.

pk04

Have you informed HMRC that you are working as a sole trader? This should have been done when you first started

Tammykitty

pk04 wrote: »

Have you informed HMRC that you are working as a sole trader? This should have been done when you first started

If they are CIS and on 20% deductions, then they must have registered?

TheCyclingProgrammer

pk04 wrote: »

Have you informed HMRC that you are working as a sole trader? This should have been done when you first started

Unless there's a special requirement for CIS contractors that I'm unaware of, sole traders do not have to notify HMRC when they first start. You can notify HMRC up to the 6 October following the end of the tax year in which you started your business.