CIS Returns are the reports required to submit to HMRC under the Construction Industry Scheme. This scheme is the method by which Contractors and Subcontractors must operate under in order to withhold tax from payments for services.
Contractors must report payments made to subcontractors via the CIS scheme, as well as pay the tax stopped on those payments over to HMRC.
A CIS300 Return is required to be filed no later than the 19th of each month, reporting the payments made and the tax withheld within the previous period.
How do I report payments made under CIS?
Under the Construction Industry Scheme, Contractors must operate a PAYE scheme, and submit the details of payments to HMRC via the software and API.
A statement of payments made and tax stopped must also be supplied to each subcontractor.
CIS Tax is usually deducted from the labour part of the subcontractors invoice, however in certain cases it can be applied to both labour and materials.
How can we help?
We operate the PAYE scheme on your behalf and submit the CIS300 returns for you. We check each new subcontractor for their tax status and inform you of the correct amount of tax to stop.
Once you have supplied us with details of the subcontractors you've paid, we will prepare and submit the details to HMRC.
Services we offer for Subcontractors
Our CIS Accounting services are not just limited to Contractors. We also provide Self Assessment preparation and submission for subcontractors who need to declare their income and the CIS tax already stopped.
If you are a subcontractor, chances are, you have been stopped more tax than is required. This is because under CIS, your personal allowance is not taken in to account when deducting tax, and nor is your allowable business expenses.
Your personal allowance is the amount you can earn before tax is due, under CIS, ALL payments have tax stopped.
If you are a subcontractor, all you need to do is provide us with a statement of payments received and the tax stopped, and details of your business expenses.
We will then prepare your self assessment and inform you of whether you are due a tax refund and how much that refund will be.
So if you're looking for an accountant who can provide CIS return services, why not contact us today.