lately i have been having trouble with my iphone,
what happens is that

when i try to call someone it will straight away go to call failed and when i use the internet it says cannot connect to the server.

the only way it works is by me restarting my iphone, its happen twice in the last three days.

is it the sim card as i did cut it my self or my iphone.

More than likely that's a simcard issue can you give your network operator a call and ask for a microsim or get one in-store?

Definitely try a change of sim to a proper microsim. If that doesn't work try a restore in iTunes. If that fails and you have an apple store near you book a genius appointment

You could also try resetting just the network settings first before doing any restores in iTunes.