A contractor, sub-contractor, or an organisation that has a high annual spend on contraction, may be registered with the CIS and have a Unique Tax Reference number verified by the HMRC. These individuals file a CIS Tax Return which can often result in their overpaying a significant amount on taxes. The HMRC normally withholds 20% on the income of individuals who are part of the CIS scheme.
The rules regarding the CIS taxes can be very confusing and it may be beneficial to contact a professional group that is thoroughly knowledgeable about the scheme. The relief given construction workers under the scheme include protective clothing, tools, maintenance of these items, contribution to your personal pension plan, and, if you use your own car for work and travel between sites, this expense.
Self-employed constructions workers receive relief for maintenance and repair costs, work related insurance, workwear and tools, and costs that are incurred exclusively and wholly in the course of running a business. The tax year in the UK is from April 6th to April 5th of each year and taxes must be filed by January 31st to avoid any penalties.
Although HMRC forms can be completed by individuals, it is often very time consuming and you must know the correct process and relevant questions to ask. Working with professionals will be very helpful. However, it will be important to make sure that they are qualified and knowledgeable in the benefits you are entitled to under the CIS Self-employed and PAYE programs.
When you are looking for a company to address your taxes, they should have Chartered Certified Accountants and Chartered Tax Advisors as well as a Data Protection Licence. The company will also have Personal Indemnity Insurance to protect you from penalties if the company makes a mistake on your tax forms. Since a person can reclaim overpaid taxes for up to 6 years, it will be a good idea to bring past tax forms for review when you choose the professional.
Companies that complete tax forms for you charge varying fees and have different options for payment. As a general rule, 20% to 30% of your income is currently being withheld by the HMRC under the CIS scheme. Therefore, there is a strong possibility that you are overpaying on your taxes. In most cases, the professionals you work with will be able to identify the overpayment and you can get a refund for a few thousand pounds.
When you meet with the representative, it will be helpful to have all of your receipts for expenses you have taken over the course of the year that are related to your job. In addition, you will need to have proof of any other expenses you have made for items used exclusively for your business. If you have not saved all of your receipts throughout the year, the professional you work with will know the steps you can take to take get the benefits available for the item.
When you have your CIS tax return completed by professionals, it will normally take them a few days to complete and submit the forms for you. You can expect your refund within 2-8 weeks. By working with professionals, you will not have to worry about the forms being completed properly or whether you are getting the overpaid taxes that are available to you.
The rules regarding the CIS taxes can be very confusing and it may be beneficial to contact a professional group that is thoroughly knowledgeable about the scheme. The relief given construction workers under the scheme include protective clothing, tools, maintenance of these items, contribution to your personal pension plan, and, if you use your own car for work and travel between sites, this expense.
Self-employed constructions workers receive relief for maintenance and repair costs, work related insurance, workwear and tools, and costs that are incurred exclusively and wholly in the course of running a business. The tax year in the UK is from April 6th to April 5th of each year and taxes must be filed by January 31st to avoid any penalties.
Although HMRC forms can be completed by individuals, it is often very time consuming and you must know the correct process and relevant questions to ask. Working with professionals will be very helpful. However, it will be important to make sure that they are qualified and knowledgeable in the benefits you are entitled to under the CIS Self-employed and PAYE programs.
When you are looking for a company to address your taxes, they should have Chartered Certified Accountants and Chartered Tax Advisors as well as a Data Protection Licence. The company will also have Personal Indemnity Insurance to protect you from penalties if the company makes a mistake on your tax forms. Since a person can reclaim overpaid taxes for up to 6 years, it will be a good idea to bring past tax forms for review when you choose the professional.
Companies that complete tax forms for you charge varying fees and have different options for payment. As a general rule, 20% to 30% of your income is currently being withheld by the HMRC under the CIS scheme. Therefore, there is a strong possibility that you are overpaying on your taxes. In most cases, the professionals you work with will be able to identify the overpayment and you can get a refund for a few thousand pounds.
When you meet with the representative, it will be helpful to have all of your receipts for expenses you have taken over the course of the year that are related to your job. In addition, you will need to have proof of any other expenses you have made for items used exclusively for your business. If you have not saved all of your receipts throughout the year, the professional you work with will know the steps you can take to take get the benefits available for the item.
When you have your CIS tax return completed by professionals, it will normally take them a few days to complete and submit the forms for you. You can expect your refund within 2-8 weeks. By working with professionals, you will not have to worry about the forms being completed properly or whether you are getting the overpaid taxes that are available to you.
About the Author:
A CIS Tax Return applies to builders and sub-builders in major types of construction operations. Finding qualified professionals to prepare and submit CIS Returns is simple and quick if you know where to search.