New-to-Self-Assessment

If you are starting out as a self employed sub-contractor, here are the registrations you are
required to complete.

As registered HMRC Agents ‘Balanced Up’ can help you with any of the following registrations
by visiting our website balancedup.co.uk or calling our office on 01633 439 002.

Here’s what you need:

1. Government Gateway / Business Account
You will require a HMRC business account. Creating a Government Gateway user ID and password.
If you don’t have one you can create one by clicking on the link below
www.access.service.gov.uk/login/signin/creds

2. Self Assessment
Using your Government Gateway account register for Self Assessment and Class 2 National
Insurance by clicking on the following link:
www.gov.uk/register-for-self-assessment/self-employed

You will receive a letter with you Unique Taxpayer Reference (UTR) number within 10 days.
The UTR is required to file a return. You will receive a reminder letter or email telling you to complete a Self Assessment tax return before it is due.

3. Construction Industry Scheme
If you are subcontracting your services within the Construction Industry (CIS), you will also be
required to register for CIS deductions as a sub-contractor. You can do this using your HMRC
business account by logging into your Government Gateway.

Your responsibilities as a sub-contractor

Pay tax and claim back deductions
As a sub-contractor, paying tax through the Construction Industry Scheme (CIS), you’re still responsible for paying the correct tax and National Insurance for your business, even if deductions have been made by contractors throughout the year.

As a sole trader you will receive a monthly statement from your contractor detailing what they’ve paid you and deductions made. Keep your ‘Deduction Certificates’ safe for your accounting records. You will be required to keep the following records:

  • Sales invoices as income
  • Deduction Certificates to calculate total deductions made on behalf of contractors
  • Purchases and all allowable expenses

At the end of the year you will be requires to submit your self assessment to HMRC. If you still owe tax after this, you’ll need to pay it by 31 January following the end of the tax year.
If you’re due a tax refund, HMRC will pay the money back.