Ive recently started as self employed doing some deliveries and electrical work ( electrician by trade, although looking to keep that to work a minimum....driving a van is handier, and I'm not looking to earn a fortune ! )
Until a few months ago, I had always been PAYE employed, so this is all new to me.
One of the places I am doing deliveries for is asking for proof of tax status from my accountant.
Ive only just become self employed at the start of October and dont have an accountant, so not quite sure what they are asking for. And dont want to sound stupid by asking them !!
I just sent the CWF1 form at the start of this month declaring my becoming self employed, although havent heard anything back yet.
Do I need an accountant ? Are there any documents I can provide for proof of tax status other than via an accountant ?
Do accountants charge much ? ( although I guess the fact I'm asking if I need one, probably means I do need one ! )
Thanks in advance,
Steve
-- Edited by Handyman on Wednesday 17th of November 2010 08:13:43 AM
Hi there, I think they may be asking for you UTR number (Unique Tax Reference) which you would have when you become self employed and file a self assessment tax return. Not sure if you are a delivery driver why they want to know this but if you do electrical work as a subcontractor it may be for CIS reasons, if not sure what this means then just type it into google, basically they take take off you before they pay you depending on your tax status. I think you need to have a chat with either a good bookkeeper or an accountant just to let you now what you need to do when you are self employed re accounts etc. An accountant will charge anything from 250-800 per annum depending on what state your accounts are in when he recieves them, but an inital chat should be free. Hope this helps, oh and Business Link are also very useful for free help and guideance on new start ups etc.
If it is for the electrical work you are being asked your tax status I don't know why they are asking you to get proof from your accountant.
If, as Julie mentions, they are asking for your UTR, they will then phone up HMRC to find out your tax status and will dedeuct tax accordingly at either 0% (unlikely in your case), 20% as in most cases (but probably not you just now) or 30%. This is deducted off the labour element so if you supplied materials this would be deducted before they applied the deduction. http://www.hmrc.gov.uk/cis/intro/index.htm
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As this is about the delivery service you offer, they may be doing a due dilligence check to ensure that they shouldn't be taking you on in an employed capacity.
Sometimes there is a fine line between the two. Although, if you are supplying the vehicle, I cant see the need.
Yes it is my own vehicle. One of the places Im delivering for is a big company. They've asked for all sorts of Police checks, insurance etc. It's costing me a fortune to get started !! But with xmas so soon, need everything right asap as it should be busy.
I'm just sticking with small jobs on the electrical side. Ive done that for some years now as employed, and to be honest, there is very little work about, hence the move ( forced by getting laid off ! ). A friend has put me in contact with the right people to get started though He's going to speak to his accountant, and hopefully she can sort everything I need.
