Few people would claim to enjoy doing their taxes and when the goal posts change, it can make the whole process even more complex and stressful! The Construction Industry Scheme (CIS) is the latest tax initiative introduced by the government with the intent of transforming the tax system for contractors and sub-contractors.
Take a look below if you’d like to get your head around CIS with a few quick and easy bullet points – and discover why you should consult a specialist claims company about a CIS tax rebate.
What is CIS?
Administered by HRMC, the Construction Industry Scheme is designed to regulate payment from contractors to their subcontractors within the building industry. If you’re a building contractor or subcontractor then it’s essential to register with the CIS if you haven’t already.
What is a CIS contractor?
If you’re responsible for a construction site and hire in self-employed workers, then you qualify as part of the CIS scheme and should register as a contractor.
What is a CIS subcontractor?
A construction worker registered as self-employed who undertakes work for a contractor falls within the remits of the scheme and should be registered as a subcontractor.
What if I’m both?
If you operate as both a subcontractor and a contractor then you need to register separately for both roles.
What if I’m not a builder?
There are several types of worker that should register for the scheme, including:
- Property developers
- Gang leaders or gangmasters
- Staff bureaux and labour agencies
If you or your organisation spend over £I million on construction over a period of three years then you need to register with CIS, whether or not the organisation carried out building work. Some organisations where this may apply include:
- Public bodies
- Local authorities
- ‘Arm’s Length’ management organisations (ALMOs)
- Housing associations
Can I get a CIS Tax Rebate?
When you register as a self-employed construction worker you’ll need to fill out an annual tax return. Although it’s possible for anyone to do this themselves, it can be easy to make a costly mistake. When you employ the services of a professional CIS tax claims company, they’ll not only complete your tax return on your behalf, but also ensure that you claim back any expenses you’re entitled to.
For example, it’s possible for workers to make a CIS tax claim for things like the cost of travelling to and from a work site, the cost of food when they’re at work and even the cost of accommodation if you’re working away.
So if you’re wondering whether or not you should be consulting a professional company like ours to make a claim on your behalf then ask yourself this: Are you able to keep up to date with the latest tax legislation, learn the tricks of the tax trade and spend a lot of time and effort filling out claim forms and undertaking admin – all whilst concentrating on your construction job too?
If the answer is no then get in touch with us today. Why not also utilise our handy tax rebate calculator for UK to see just how much you could be owed. For a small fee we will make annual tax returns easy and ensure that you make the most of any possible rebates.