What Is a CWF1 Form?
Form CWF1 is used to register or re-register with HMRC as the sole owner of the self-assessment. You can also register online.
A CWF1 form is something you must complete when you are self-employed. You use it to tell HMRC that you are making money and that you need to do a self-assessment. You can use it to both register and re-register as an individual entrepreneur. Of course, you can do all of this online as well, but you'll use this form if you prefer a paper file.
What Is Self-Assessment?
Self-Assessment is the process by which you pay the taxes you owe HMRC on your untaxed income. If you work full-time as an employee, you pay your taxes directly out of your salary. This method is called Pay What You Win (PAYE). But when you are self-employed, you earn gross money, that is, you are not taxed. This means that you have to report your income to HMRC and file an income tax return.
And you have to do it before January 31, the year after the tax year you pay. Wait, what does that mean? Here is an example :
You start trading in September 2020. This means that you earn in the fiscal year 2020/21, which runs from April 6, 2020, to April 5, 2021. You must pay your first tax bill by January 31, 2022.
What Does a CWF1 Form Say?
When completing a CWF1 please provide the following information:
● Business address
● National Insurance number
● Business details
Click here to complete your form CWF1 with HMRC.
When Should I Submit My CWF1 Form?
You must use Form CWF1 to notify HMRC on October 5 of your second tax year that you are the sole owner. This way, you register on time to submit your self-declaration, without incurring a post-registration fine.
What Happens After I Submit a CWF1?
HMRC provides you with a Unique Taxpayer Reference Number (UTR). You then need to keep track of company records so you know how much money you are making and what your expenses are. These records allow you to complete your tax returns each year and HMRC may ask you to view them.
What Should I Enter on a Form CWF1?
The form asks for your personal information, your NI number, and the nature of your self-employed activity. This includes the name of the company you intend to trade under and the address where the company will operate.