CIS encompasses more than what you might typically first think of when you consider the construction industry.
It is a rather complex scheme, however, KJ Bookkeeping and Payroll can guide you easily through this by getting to know the ins and outs of your business and recommending what the best course of action for you and your business is.
We can help you recover you tax on CIS submission.
CIS (Construction Industry Scheme) is a somewhat complex HMRC scheme whereby if you are subcontracted work as a self employed individual or as a company within the construction industry then the Contractor has a legal obligation to withhold anywhere from 0-30% CIS tax which is then paid directly to HMRC and you will then recover when your CIS submission is received by HMRC.
These deductions essentially count as advance payments towards the subcontractor's tax and NI payments. Although it has been in use for a number of years now it can still cause complications for those who are unfamiliar with it and how it works.
If you use subcontractors then you are referred to as a "main contractor". This will mean that you or your business will have a legal obligation to register for CIS and verify, via HMRC, any subcontractors that you pay. During the verification process you will be told what percentage to hold back for CIS purposes.
If you work as a subcontractor then the main contractor will make CIS deductions once they have verified you. These will then be taken off any amounts owed when you do your tax return. If your turnover is above a specified amount and your taxes are on time and up to date then you can apply for gross status. This will mean that 0% will be deducted from your invoices for CIS.
Luckily KJ Bookkeeping and Payroll is here to assist and can advise on whether you should be enrolled for CIS. We can even advise on how to get CIS deductions down to 0%.
KJ Bookkeeping and Payroll is here to assist and advise you.
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