The construction industry scheme (CIS), is a highly complex area for anyone in the construction industry. When reporting certain taxes, keeping progress invoicing correct, and keeping the appropriate documents up to date, there can be a lot of confusion and misunderstanding.
We’ve got loads of knowledge and understanding in the construction industry and we’ve helped many clients in our time as accountants. We assist with CIS tax refunds for both contractors and subcontractors and ensure that all CIS reporting is recorded accurately and filed on time to the relevant authorities.
We’ll help you invest in a great invoicing system that can invoice on contract stages and that calculate the labour aspect regarding CIS when raising sales invoices. The system should also be able to report to HMRC tax withheld and deducted at source.
Contractors are deducted 20% CIS tax at source and must withhold cis tax from their subcontractors to be paid over to HMRC. This usually leaves contractors in a credit position with HMRC, depending on the labour/materials ratio, and once claimed, is then refunded back from HMRC after the fiscal year-end. You might also consider applying for gross status, depending on your cashflow – and we can help you make that decision.
Subcontractors are usually deducted CIS at source from the contractor and deducted at either 20% or 30% off their gross income. Subcontractors must register for CIS to be deducted the lower rate of 20% off their gross income. Most subcontractors are left in a credit position by the fiscal year-end and once claimed, will receive a CIS tax refund.
One of the most imporant pieces of legislation to understand as a freelancer or contractor in the UK is IR35. The legislation has been active in the UK since the beginning of the 21st century, and is constantly changing with the times.
The details and intricacies of IR35 can give you a headache but, as your accountant, we can take care of all of that, putting your mind at ease.
We’re also here for any questions you may have about IR35. If you want to understand what’s going on, or how the rules apply to you, then we’re happy to talk.
Complete annual accounts within the first quarter of the financial year-end date.
It’s a necessity but we know its value. Stay connected to your finances.
Our fees are fixed and agreed from our initial engagement so there are no surprises.
We keep you updated and in the loop. There’ll be no shocks or surprises.
Speak to us about your CIS & IR35 Tax Return support needs, to see how we can help.
