Zahtax Accountants provides self employed CIS tax return services to clients. We are based in New Malden, Surrey, but help CIS subcontractors cover all the surrounding areas, such as Surbiton, Chessington, Wimbledon, Kingston, Weybridge and others. We have a team of CIS expert accountants who can professionally provide CIS tax return services, ensuring that you claim all your legitimate expenses and receive your CIS tax refund as soon as possible. To ensure reliable, trustworthy and transparent services, we never request our client‘s refunds into our bank account. Our clients receive their refunds directly into their personal bank account. Additionally, we do not charge our clients a percentage of their refund. Our fees are based on the work involved in preparing and submitting your CIS refund tax return.
A self employed CIS subcontractor is a worker who does some kind of construction work. HMRC tax rules governing the construction workers are called Construction Industry Scheme (CIS) rules. Most of the construction related work will fall under the Construction Industry Scheme. For example, laying foundations, brickwork, repairs and maintenance, decorating, heating, gas, electric work etc.
If you work as a CIS subcontractor, your employer (CIS contractor) will deduct 20% tax from your invoice/earnings. It is the responsibility of the CIS contractor to deduct 20% tax from the CIS subcontractor and make this payment to HMRC. The CIS tax deductions are effectively an advance payment of the CIS subcontractor’s tax and national insurance.
Under the construction industry scheme (CIS), you have certain responsibilities:
If you are working as a CIS subcontractor and providing your services personally (you have not registered your own limited company), you should be registered with HMRC as a self-employed CIS subcontractor. You can call HMRC helpline on 0300 200 3210 to register as a CIS worker.
You should send invoices for the work completed to your CIS contractor, who will make the payment to you after the deduction of CIS tax. If you are a registered CIS worker, your contractor will deduct 20% tax. However, your contract will deduct 30% tax from your invoice if you are not a registered CIS worker.
As a self-employed CIS contractor, you must ensure that you keep a record of CIS deductions made by your employer/CIS contractor. You must request your employer/CIS contractors for the CIS deduction statements. They will issue this every month for any CIS deduction made from your pay. This will serve as an evidence for HMRC that you have paid your CIS tax at source.
Ensure that you keep all the expenses receipts related to your work to claim these expenses against your employment work. For example, if you buy any tools which you will be using for your self employment work, you can claim this against your self employment income. In the same way, any other self employment related expenses, such as travel, fuel, insurance, etc, can be claimed against your self employment income.
Being a CIS self employed woker, you are required to file your self assessment tax return every year. In your tax return, you need to include the following:
As discussed above, your CIS contractor will deduct CIS tax from your wage and will make the payment of your CIS tax deducted to HMRC. In your annual CIS tax return, you will provide the details of your income and CIS tax deducted. If the tax deducted by the contractor is more than your actual tax liability, you will get your CIS tax refund also called CIS tax rebate from HMRC. If the tax deducted is less than your actual tax liability, you will make additional payment of tax. At Zahtax, we have an expert team of CIS accountants who can help you prepare your tax return, ensuring that you claim all your legitimate expenses and maximise your refund.
An expense is allowable to offset against your CIS income if it has been incurred wholly and exclusively for the purpose of your Self employed CIS work. Based on our experience, the most commonly incurred expenses by CIS subcontractors are:
The deadline to file the annual Self employed CIS tax return is 31 January for the following the end of the tax year. The accounts for self employed CIS subcontractors are usually prepared for the period 1 April to 31 March. For example, annual CIS tax return for the period 1 April 2022 to 31 March 2023 would be filed by 31 January 2024. The deadline to file the CIS tax return and to make the payment is the same as 31 January 2024.
If we are preparing your self employed CIS tax return, you will get your refund directly into your bank account. We will prepare your CIS tax return, and if there is a refund on your tax return, we will include your bank account details for the refund. HMRC will pay any refund directly into your bank account.
Your tax rebate is based on your gross income, CIS tax deducted by the contractor and expenses incurred by you related to your self employed CIS work. We will advise you to claim all the legitimate expenses related to your self-employment work to maximise your refund.
If you have paid CIS tax on your self-employment work and expect a refund in your tax return, you can prepare your tax return and submit it soon after 5 April. If you would like Zahtax Accountants to prepare your tax return, we can prepare it as soon as you provide us with your information in April and submit it to HMRC to ensure that you get your refund as quickly as possible.
It can take up to six weeks for HMRC to process a CIS refund. Sometimes, it can take longer if HMRC is not able to verify your refunds with the employer you worked for. Zahtax Accountants will keep you updated if there is any delay in your refund, and we will try our best to ensure that you get your refund as soon as possible.
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