New Time Limit for CWF1 Self Employment Form | AccountingWEB

New Time Limit for CWF1 Self Employment Form

So according to HMRC's online registration helpline, the registration time limit for the self-employed is 31st January following the tax year in which the business commenced. In fact, they read me the blurb that is read out to those applying by phone, which does indeed say just that.

Which would be fine, except that according to HMRC's website, the time limit is 5th October following the tax year in which the business commenced. See http://www.hmrc.gov.uk/manuals/sammanual/sam100130.htm "An individual should register as self-employed no later than six months from the end of the tax year they became self-employed."

Than there's http://www.hmrc.gov.uk/guidance/selling/tax.htm which informs us, under the heading "Time Limit for notification of [class 2] National Insurance liability": "From your trading start date you have three months to notify HMRC that you are trading, otherwise you could face a £100 penalty".

Help me out, someone: is it 9, 6, or 3 months if ALL potential late registration fines are to be avoided?  

Comments
petersaxton's picture

9 months

petersaxton | | Permalink

If you get fined for anything less then appeal and send a copy of the nine months document.

It may be a question of HMRC not updating their website/documents properly.

taxhound's picture

Has anyone

taxhound | | Permalink

Ever had a client who received a £100 penalty for failing to register within 3 months?

petersaxton's picture

No

petersaxton | | Permalink

Not me.

Constantly Confused's picture

Possibly an odd question

Constantly Confused | | Permalink

But if someone is within Self Assessment (they have a high amount of untaxed interest say), then they commence in SE, do they still need to notify HMRC?

I would do it anyway tbh, but purely as a learning exercise :)

I'msorryIhaven'taclue's picture

CWF1 Rendered Obsolete?

I'msorryIhaven'... | | Permalink

Not such an odd question - I see exactly where you're coming from.

This morning I am registering a CWF1 for a client who already files a tax return, and if she really does have until 31st January 2014 to inform the Revenue of the commencement of that self-employment then I'm wondering why bother? Surely the client's 2012/13 tax return, provided it is filed on time by 31st January 2014, will serve as notification to HMRC of the commencement of that new self-employment?

Anyone have any thoughts on that?

Footnote: I gather there may be separatetly time-structured fines for late notification of liabilty to Class 2 NI. Not an issue in my client's case, as she already pays Class 2 NI by virtue of an existing partnership. But, under more ordinary circumstances (in which the liabilty to Class 2 stamps first arises), could there be a much shorter time limit (3 months, perhaps?) for Class 2 NI notification that would make a CWF1 not only essential, but also effectively shorten that form's submission deadline?