Speedy CIS refunds in 14 days
(dependant on HMRC of course!!)
It may seem like we are barely into 2020, but April will be here before we know it and if you’re in the construction industry, April brings with it Tax returns but for you the quicker its completed the quicker you can get any overpaid tax back to you! That’s where we come in….
The Construction Industry Scheme (CIS) sets out the special tax rules for subcontractors who work in the construction industry and how payments must be handled by contractors.
Wondering what your responsibilities are as a Contractor?
Contractors: As a contractor, you are required to meet specific obligations under the scheme, including registering with HMRC, checking whether your subcontractors are registered with HMRC, paying subcontractors, deducting tax and submitting monthly
statements confirming these payments. Services J Sweeney provide for contractors include:
● Registering you with HM Revenue & Customs (HMRC) as a contractor
● Verifying your subcontractors with HMRC
● Ensuring you pay your subcontractors correctly within the scheme
● Supplying deduction statements to the subcontractors
● Keep your records in good order and supply HMRC with monthly returns
● Making sure you do not incur penalties by failing to submit your monthly returns to
Here at J Sweeney we already work with numerous contractors and are equipped to deal with your needs efficiently. By making sure we are always up to date with any changes to the CIS regulations we can notify our clients quickly of any changes that may affect them.
What about Subcontractors?
Subcontractors: If you are a subcontractor, your main obligation is to register with HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business name, business partners and other relevant information, we can help you with all of this.
Services J Sweeney provide for subcontractors are:
● Determining your status as a subcontractor or employee, (or both) and register you with HMRC accordingly
● Verifying you with HMRC on behalf of your contractor
● Managing and organising your business records
● Preparing your end of year self assessment tax return and calculate your tax liability/ refund where applicable
● Any contractor that you work for must determine whether or not you are to be treated as employed or self-employed for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
But what about if I’m self-employed?
If you are self-employed: HMRC will register you as a sub-contractor under the CIS scheme and they will set you up to receive payments ‘under deduction’. This means contractors must make a deduction of tax at 20% (30% for unverified subcontractors) from the labour element of your invoices and pay it over to HMRC. Whether you are the contractor or the sub-contractor, J Sweeney can help you keep you CIS affairs in order. We can prepare income and expenditure accounts, compute your tax liability, fill your return and submit this to HMRC. We can also advise on Capital Gains Tax, Capital Allowances and assist you with any HMRC enquiries you may have.
We can work together by Skype, email or phone. Whatever suits you.
Contact us today: 01604 950034 | [email protected]