Registering for CIS

Working without a UTR number

It’s important to note that you can start work before your UTR is issued by HMRC. You do not need a UTR to start work but if you don’t then your client / contractor will need to deduct tax from you at 30% rather than the standard 20% if you have one. This is known as emergency tax and is charged because HMRC has no recorded of you being self employed. To start work without your number you need to give your client / contractor your Name, contact details and National Insurance number. They will then deduct 30% every time you are paid. However, once you received your UTR number and submit your tax return you can reclaim some if not all of this tax (depending on your earnings).

Working with a UTR number

If you start work once you have your number you will only be taxed at 20%. This means that your client / contractor will deduct 20% from your pay every time you are paid. Simply give your client / contractor your Name, contact details, UTR number and NI number when you start working for them.

Depending on how much you get paid each year it’s likely that you will be due a tax return at the end of each year.

Subcontractor Support can help you get your number and start the process of reclaiming your CIS tax.