If you’re a contractor or sub contractor in the construction industry, you need to be aware of CIS tax and what is expected of you by HMRC.
Q: Who does CIS tax apply to?
A: CIS tax applies to both contractors and subcontractors.
If you are a contractor, you will need to deduct CIS tax from your subcontractors and submit CIS Returns to HMRC. If you are a subcontractor, you will need to complete a tax return and claim your CIS refund.
Q: Why do I need a professional to handle my CIS tax? Can’t I do it myself?
A: You can, but CIS can be complex, particularly for contractors – who have to submit CIS returns monthly and may have to pay high penalties for submissions that are even just one day late.
The Accountancy Partnership can handle CIS obligations for both contractors and subcontractors, and because we operate online and our head office is outside the capital, we make savings – meaning that even if you’re based in London, you don’t have to pay London prices!
So read on to find out what your CIS obligations are – and how we can help you.
Q: What are my CIS obligations?
A: You must submit a CIS return before the 19th of each month.
The CIS return informs HMRC of the amount of CIS tax you have deducted from your subcontractors, and how much you owe HMRC.
Q: Do I need a professional to handle my CIS returns?
A: It’s not compulsory, but…
- For contractors, CIS can be complex and time-consuming – particularly because a return must be submitted every month.
- Late submissions incur high penalties. If your return is just one day late, you can expect a penalty of £100, while a further £200 is payable two months later if it still hasn’t been submitted – and the penalties continue to increase the longer this goes on. Forgetting to do your CIS returns once or twice can quickly become a very expensive mistake.
- Professional representation can be invaluable in the event of a CIS enquiry by the HMRC.
Unless you’re completely confident that you can correctly complete your CIS return and submit it in good time every month, it’s safer to put your CIS tax affairs in the hands of a professional accountant. That’s where The Accountancy Partnership can help.
Q: Why should I choose The Accountancy Partnership to complete my CIS returns?
A: We can offer a comprehensive, easy-to-use CIS return service at an affordable price.
We handle everything for you, leaving you to concentrate on running and growing your business and giving you peace of mind. In addition to the regular submission of your CIS returns, we will also:
- Process the payment and deduction statements
- Add and verify new sub-contractors
- Represent you and your business in the event of a CIS enquiry from HMRC
- Correspond with HMRC on your behalf
- Offer you unlimited help and advice on CIS tax matters.
Easy to use:
- First, we ask you to complete a short form so that we understand your business and have all the information we need about your subcontractors.
- Next, we add your business to our system, ready to process your monthly CIS returns and send you an automated email each month.
- When you receive your reminder, you simply need to inform us how much you’ve paid to each subcontractor.
- We will then send you your CIS statements and tell you how much you owe HMRC.
- Once you confirm you’re happy with your statements, we submit your monthly CIS return.
These services – and more – are all included in a fixed fee of just £3 per statement, per subcontractor (subject to a minimum monthly fee of £12). So if you have 5 subcontractors on your books, our comprehensive service will cost you just £15 per month.
So why not leave your CIS tax matters in our capable hands and relax? To get an instant online quote on our CIS returns, simply click on the quote banner and find out how much you can save.
Q: What are my CIS obligations?
A: You must complete a personal tax return annually, which will tell HMRC about your income, expenditure and how much CIS tax you have paid.
Often, subcontractors pay more in CIS tax than they owe HMRC, meaning that they are likely to be owed a refund.
Q: Do I need a professional to handle my tax return and CIS matters?
A: No, but…
A professional accountant can save you money and time by:
- Ensuring your tax return is completed correctly and submitted in good time – giving you peace of mind and avoiding fines of up to £3,000 for late submissions, as well as unexpectedly hefty tax bills.
- Completing your tax return far more quickly than you can – leaving you to concentrate on your work and giving you more time to relax at the end of the day, without facing lengthy forms.
- Advising you on what expenditures you can claim for, and claiming them correctly for you. Not all types of expense are always obvious, and a professional accountant could make you substantial savings.
Q: Why should I choose The Accountancy Partnership to complete my tax return and deal with my CIS matters?
A: We offer a comprehensive, easy-to-use tax return and CIS service at an affordable price.
We deal with the whole process, including identifying tax savings, filing tax returns and tracking your CIS refund.
Easy to use:
We aim to make the process as easy as possible, and to ensure that your tax refund is as large as possible too! We strive to save you as much money as we can.
- First, we ask you to complete a short form which authorises us to act on your behalf in tax matters.
- When it’s time for you to send us your records, we will send you an automated reminder. Keep paper records? Not a problem – we have a free, pre-paid mail service to ensure they get securely to our door. Electronic records can of course be emailed to us. Even if your records are incomplete, there are still ways in which we can calculate your income and expenses, ensuring you do not pay more tax than you owe. We can also advise you on good record-keeping practices to help you keep better records in future.
- Within 14 days of receiving your records, we will complete your accounts and your tax return. They will be checked by another Senior Accountant, who will review and approve them, checking that every possible expense has been claimed on your behalf.
- A copy of your accounts and tax return are then sent to you for approval.
- After you confirm that you’re happy with our work, we submit it electronically to HMRC.
- Last but not least, our internal systems will monitor the progress of any CIS refund due and query HMRC about it regularly until it is paid. This typically takes 1-6 weeks. We will pay you your refund on the same day that we receive it from HMRC, and we will not take a percentage of the refund as some companies do.
All the services above cost just £19.50 a month, although there may be a small additional charge if you do not do your own bookkeeping.
Q: How can I find out more about your CIS and tax return services for subcontractors?
A: We love to chat about our services and how we can help your business. You can call our London office on 020 3355 4047 or make an appointment to come in and see us at the below address:
201 E1 Studios
7 Whitechapel Road