Nailing down your tax bill
At Taxfile, we provide several accountancy- and tax-related services for construction workers, including those working within the Construction Industry Scheme (‘CIS’).
As a contractor, you are required to meet specific obligations under the scheme, including being registered with HMRC, checking whether your subcontractors are also registered with them, paying subcontractors, deducting tax and submitting monthly statements confirming these payments. You are also obliged to supply the subcontractor with details of the tax you have deducted from their invoice to you.
If you are a subcontractor, you have to be registered with HMRC and complete annual Self Assessment tax returns. You must also keep HMRC informed of any changes to your business, for example changes to your business address, business name, business partners and other relevant information.
Services we provide to contractors in the construction industry:
- We can register you with HM Revenue & Customs (HMRC) as a contractor;
- We can verify your subcontractors with HMRC;
- We’ll ensure you pay your subcontractors correctly within the rules of the scheme;
- We can supply deduction statements to the subcontractors;
- We’ll keep your records in good order and supply HMRC with monthly returns, electronically;
- We can help you carry out your obligations to positively identify your workers and maintain the records required.
Make sure you do not incur penalties by failing to have your monthly returns submitted to HMRC. Taxfile works with numerous contractors and is equipped to deal with your needs very efficiently. By making sure we are always up to date with any changes to the CIS regulations, we can notify our clients quickly of any changes that may affect them.
Services we provide for subcontractors in the construction industry:
- We can determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly;
- We can verify you with HMRC on behalf of your contractor;
- We can manage and organise your business records;
- We can prepare your end of year Self Assessment tax return and calculate your tax liability — or claim a refund for you where applicable.
Any contractor that you work for must determine whether or not you are to be treated as employed or self-employed for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
If you are self-employed, HMRC will register you as a subcontractor under the CIS scheme and they will set you up to receive payments ‘under deduction’. This means contractors must make a deduction of tax at 20% (30% for unverified subcontractors) from the labour element of your invoices and pay it over to HMRC monthly electronically.
Whether you are the contractor or the subcontractor, Taxfile accountants can help you keep your CIS affairs in good order. We have 3 convenient office locations in London (Tulse Hill and Dulwich in SE21 and Battersea in SW8) along with various tax specialists elsewhere in the UK, making us easy to work with at all times.
Our team includes Polish, Pashtu, Dari, Russian, Persian as well as Native English speakers.
All our registered clients receive Tax Investigations Insurance as a matter of course (terms apply). This gives you peace of mind that you won’t have to bear the cost of an HMRC investigation in virtually all situations.
Taxfile – we’ll nail down your tax bill for you! Call 0208 761 8000 for more information or book an appointment online and we’ll be happy to help.
A discount is available for introducing us to a friend or colleague who becomes a new Taxfile client; simply ask for details.