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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am self employed and newly set up my own business in the

This answer was rated:

I am self employed and newly set up my own business in the UK.
I tendered an Invoice for £1,510.00 to a company I have a sales commission agreement with.
Their Accountant has come back with the following comment:-
"I also note that you are a Sole Trader which means that under HMRC guidelines as the payments are for commission we have to deduct tax at 20% unless you provide us with a UTR number which we can then verify with HMRC. We will then forward the tax deducted on to HMRC on your behalf."
Given I am self employed is this statement correct? How would the HMRC know they are paying my 20% on my behalf as I do not have a UTR number at this moment in time.
Hello and welcome to the site. Thank you for your question.

Please advise why you have raised an invoice to your customer without securing a UTR number..

Have you registered for self assessment as self employed?

Many thanks
Customer: replied 2 years ago.


To be honest, I wasn't aware I needed to do such a thing. I just assumed that I would supply my books etc., to an accountant after trading for a year for them to sort everything out. Sorry for being so naive.

Is it a big process to register?

Thank you for your reply and openness in your answer.

You should register for self assessment as self employed within 3 months of becoming self employed. You can register for self assessment here

Once you have been issued with a UTR number, you should forward it to your customer and they wouldenable them to pay you for your invoices without tax deducted at source.

In the meantime, the customer company is protecting them selves and also ensuring tax deducted is paid to HMRC.

It is not a big process to register and you don't need an accountant to do this for you.

If you get stuck, come back and I will help you here.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond. and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Many thanks for your kind help.

I will get back if I have problems registering.

I thank you for accepting my answer.

Best wishes.