Self Assessment VAT Registration

Registration for self-employment tax and National Insurance is done at the same time using 2 forms.

CWF1 is the actual registration form giving personal details etc.

CF10 is used in cases where annual profits are not expected to reach a threshold, currently £4,825, and thus exemption from paying National Insurance can be claimed. Alternatively, should your profit exceed the threshold, you can either pay monthly by direct debit or receive a quarterly bill. The current Class 2 National Insurance contribution weekly rate is £2.30. Additonal National Insurance contributions, known as Class 4, may be due too, as part of the annual Self Assessment bill.

Registration should be completed within 3 months of the chosen start date or a £100 penalty will be applied for late registrations, although this is waived if form CF10 is filed.

VAT registration becomes obligatory when your turnover reaches the annual threshold, which is currently £67,000 in any 12 month period. Below this level, registration is voluntary. Two or more self-employed businesses owned by the same person are aggregated for the purposes of this threshold and, in such a case, each business would have to be VAT registered. Using SamsTax bookkeeping software will keep you up to date with your figures, so passing the threshold will be easy to spot. From then on SamsTax will prepare the necessary summaries for your VAT returns.

In certain cases a 'flat rate' scheme might be advantageous - seek further advice.