Whether you are a Company or Self-Employed you will need to register your business as a Sub-Contractor and / or Contractor. But Before you do that you will first need to register for a PAYE reference number. The PAYE services are used to report any tax withheld by your customers to HMRC.
You will need to decide whether you are contractor or sub-contractor or both.
If you don't hire (on a self employed or Company basis) then you are not a Contractor. If you hire people, and they are part of your employees then you are still not a Contractor.
You need to register with the CIS department within HMRC as a Sub-contractor. You need to then supply your details to the Contractor you are working for, for them to Verify you and then tell you how much tax you need to deduct from your invoice. So the Contractor will then withold your Tax and pay to HMRC on your behalf. If you are Self-Employed you will need to submit a Self-Assessment each year to HMRC. If you are a Company, you will simply. On submission of your Self-assessment to HMRC, you will need to calculate how much tax you have already paid (through the deductions on your invoices). You will also need to perform the same calculation as a Company so that you can claim a refund from the HMRC through their online portal too.
You will first need to register as a Contractor with HMRC, and you will need to register for PAYE also. If you hire any sub-contractors you will need to verify their details with HMRC (online) and ask your sub-contractors to show the tax deducted on their invoices. As a Contractor you will need to submit monthly CIS returns to HMRC showing how much tax you have deducted from subcontractor invoices, and how much tax you need to pay HMRC on behalf of these sub-contractors. So there are 2 monthly submissions required to HMRC if you are a contractor:
1. CIS Tax suffered (showing your tax deducted and paid to HMRC by your customer)
2. Monthly CIS Returns (Showing Sub-contractor Tax)
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