A CWF1 form is something that you fill out when you’re self-employed. You use it to tell HMRC that you are earning money and need to do a Self Assessment. You can use it both to register or to re-register as a sole trader. Of course, you can also do all this online, but you would use this form if you prefer paper registration.
When you complete a CWF1 form, you have to provide the following details:
Self Assessment is the process by which you pay the taxes you owe to HMRC on untaxed income. If you work full-time as an employee, you pay your taxes directly from your salary. This method is called Pay As You Earn (PAYE). But when you’re self-employed, you earn money gross i.e. tax is not deducted from it. This means that you have to declare your earnings to HMRC yourself and do a tax return by the 31st January following the end of the relevant tax year. For more information about completing a Self Assessment tax return, see our handy glossary page or contact one of our experts today!
When you register for Self Assessment, you will be given a Unique Taxpayer Reference number by HMRC which you will use to identify your records.
The deadline for registration is 5th October following the end of the relevant tax year. If you fail to register by the deadline you will be faced with a penalty fine.