Self assessment tax help

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Doom906
Doom906 Posts: 4 Newbie
in Cutting tax
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.
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  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    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
    Dazed_and_confused Posts: 6,458 Forumite
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    I think you mean started after 5th of April, not 6th of April.
  • Doom906
    Doom906 Posts: 4 Newbie
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    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
    Dazed_and_confused Posts: 6,458 Forumite
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    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
    00ec25 Posts: 9,123 Forumite
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    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
    Doom906 Posts: 4 Newbie
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    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
    Tammykitty Posts: 1,005 Forumite
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    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
    pk04 Posts: 2,998 Forumite
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    Have you informed HMRC that you are working as a sole trader? This should have been done when you first started
    There comes a time in every woman's life when the only thing that helps is a glass of champagne ... Bette Davis
  • Tammykitty
    Tammykitty Posts: 1,005 Forumite
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    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
    TheCyclingProgrammer Posts: 3,702 Forumite
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    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.
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