Guide to the Employer Payment Summary (EPS) – for Limited Companies within the CIS

Guide to the Employer Payment Summary (EPS) – for Limited Companies within the CIS

by Daniel at Taxfile.

Understanding the Employer Payment Summary (EPS) monthly claims for limited companies within the CIS

Limited company contractors operating within the Construction Industry Scheme (CIS) have distinct payroll obligations, including the submission of their Employer Payment Summary (EPS). In today’s guide, we’ll explain what the EPS is, its purpose, and the submission rules limited companies have to follow if they work within the Construction Industry Scheme.

What is the EPS?

The Employer Payment Summary serves as a crucial mechanism for limited company contractors to report additional payments, deductions, and adjustments to HM Revenue & Customs (HMRC) alongside their regular payroll submissions. While all such employers submit a monthly EPS, limited company contractors operating under CIS have specific considerations due to their status and the nature of their work within the construction industry.

The purpose of submitting monthly EPSs for Limited Company Contractors in the CIS

The primary purpose of EPSs for limited company contractors operating within the CIS is to provide HMRC with accurate information about deductions suffered under the Construction Industry Scheme. By submitting each monthly EPS for CIS, limited company contractors also ensure compliance with CIS regulations and provide HMRC with essential data for tax calculations and entitlements.

Submitting an EPS for Limited Company Contractors working within the CIS

Limited company contractors operating within CIS are required to submit an EPS to HMRC every month, even if there are no adjustments to report. EPSs should be submitted after the end of the tax month but before the 19th of the following month, in line with HMRC guidelines.

Contractors can use HMRC’s online services or compatible payroll software to submit their monthly EPS for CIS. It’s crucial to ensure that the information provided in each EPS accurately reflects the deductions suffered under CIS.

The CIS deductions suffered sent through an EPS are promptly reflected as a credit on the PAYE account. This credit will then be utilised to set off against other liabilities, including PAYE tax, National Insurance Contributions (NIC), and subcontractor’s tax submitted through the CIS300 return.

When sending the EPS you can also claim Employment Allowance and recover statutory payments that exceed the amount of PAYE due.

Submitting EPSs late may lead to penalties imposed by HMRC, which can vary based on the extent and frequency of delays.

Late with your tax return and tax payment? What happens now?

Missed the Tax Return Deadline? What Happens Now?

Missed the Tax Return Deadline? What Happens Now?

[February 2024]: If you missed the deadline to submit your self-assessment tax return, the first thing to know is that you are now into the penalty stage. HMRC applies an automatic £100 penalty to those who are even 1 day late (the deadline was 11.59pm on 31st January) and further penalties are added if you take even longer to comply. It’s worse, of course, if you also haven’t paid any tax owed as you’ll then owe interest too, so our advice is to pay as much as you can as soon as possible, so you’ll reduce any element of interest. However, if you “took reasonable care to meet” a deadline and there is a genuine reason why you were late, you have the option to appeal if your circumstances fit eligible criteria. Let’s take a look …

Circumstances that are taken into account by HMRC when considering appeals include:

  • if a close relative or partner died shortly before the tax return or payment deadline;
  • if you had to stay in hospital unexpectedly;
  • if you had a life-threatening or serious illness;
  • if your computer or software failed at the time you were preparing your online return;
  • if HMRC’s online services were disrupted;
  • if you were prevented from filing your return or paying your tax because of a fire, flood or theft;
  • if there were unexpected postal delays;
  • if you have a disability of mental illness that affected the delay;
  • if you misunderstood your legal obligation, or were unaware of it;
  • if someone you’d appointed for the task (e.g. accountant or tax adviser) failed in their obligation on your behalf;
  • and occasionally other reasons which, if genuine, HMRC may deem to be relevant (for example, some Covid-related circumstances).

Excuses that aren’t usually accepted by HMRC include:

  • you didn’t receive a reminder from HMRC;
  • you found HMRC’s online system too difficult to use;
  • your cheque bounced or payment failed due to you having insufficient funds;
  • you made an error on your return.

Appealing Against an HMRC Penalty

You do have the right to appeal against HMRC’s decision to issue you a penalty, for example due to a tax return — or the actual tax — being paid late. Taxfile can help advise you about that (see below).

Taxfile are Here to Help

So, if your tax return is late, you owe HMRC tax or are owed a refund by them, come and see us as soon as possible at Taxfile — we’re accountants and tax advisors in Tulse Hill, South London. We’ll help to sort it all out for you with the minimum of fuss, at a competitive price. Come in as early in the month as you can and we’ll help you to sort things out — for the best possible outcome. We know the rules and liaise with HMRC every single day on behalf of our clients, so if we can help convince HMRC to reduce or completely remove any penalty you may be facing, we will do so, so long as your circumstances fit the relevant HMRC criteria. You can only appeal within 30 days of the date of any penalty notice you receive, so the earlier the better – give us a call on 0208 761 8000 or fill in the short form here and we’ll take it from there. Alternatively, book an appointment with one of our expert tax advisors to chat things over, without obligation. Payment plans called ‘Time to Pay’ arrangements may also be available for eligible people who cannot to afford to pay their tax in one lump sum — Taxfile would be happy to tell you more.

020 8761 8000 Book Appointment Get Started Here
Final day to submit your Self-Assessment tax return

Today is the Tax Return Deadline!

TODAY is the Self-Assessment tax return deadline!

[As at 31 January 2024]: The 31st January is THE FINAL DEADLINE by which you need to file your Self Assessment tax return with HMRC. If you miss(ed) that deadline (11.59pm on 31st), you risk a £100 HMRC fine right away plus other significant penalties thereafter. Interest will also be charged from 1 February if tax is not paid by midnight on 31 January (rules apply).

Time is running out, so contact Taxfile for help with your tax return as soon as possible please. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY and we’ll make filling in and submitting your tax return simple!

020 8761 8000 Book Appointment Get Started Here

We’ll make filling in and submitting your tax return easy!

Don’t leave it to the last minute as there is always a bottleneck — come in as soon as you can, please, for professional help with filing of your tax return. We’ll require your records and figures for the financial year 6 April 2022 to 5 April 2023 unless you have a different accounting period. Plus any previous years not yet submitted, if applicable.

* As well as a face-to-face meeting, we can do a ‘virtual’ meeting with you, for example using Zoom video, Microsoft Teams, FaceTime, WhatsApp, Google Hangouts — or whatever suits you best.

It doesn’t matter if you have zero tax to pay – you still need to submit your tax return.

020 8761 8000 Book Appointment Get Started Here

* Please note: in busy times like January, a deposit may be required before appointments commence.

Taxfile is Open on Sunday Mornings in January — Perfect for 2022-23 Tax Returns

We’re Open on Sunday Mornings in January — Perfect for 2022-23 Tax Returns

Taxfile is Open on Sunday Mornings in January — Perfect for 2022-23 Tax Returns

With the self-assessment tax return deadline almost upon us, we are opening our Tulse Hill office* on Sunday mornings, 9 am to 1 pm, for the remainder of January. That’s as well as the previously announced Saturday morning opening during the same hours. It’s the perfect opportunity to discuss your tax return with us or bring in figures and records without having to disturb your working week. Weekend time slots are limited, though, so please book a free 20-minute appointment as soon as possible if you’d like to visit.

020 8761 8000 Book Appointment Tax Return Help
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Information You Need to Supply for Professional Help with Your Tax Return

Information You Need to Supply for Professional Help with Your Tax Return

Information You Need to Supply for Professional Help with Your Tax Return

If you’re self-employed in the UK, you need to file a self-assessment tax return each year. It’s not only the self-employed, though. If you are on a higher income* or receive untaxed income from property rental, savings, investments, or dividends, you also have to submit a return. Getting all the fields filled in properly and the figures right can sometimes be difficult, though. That’s where professional help will be worth its weight in gold. But what information will your accountant or tax advisor need from you? That’s what today’s post is all about, and we’ll explain exactly what information you’ll need to supply.

* (Those earning more than £100,000 currently, or over £150,000 from next year). Read more

Forming a Limited Company?

Having been the accountants of choice for individuals and businesses in the South London area, we have recently noticed a surge of individuals moving away from the sole trader status and enquiring about forming a limited company.

The reasons for changing status have varied; someone mentioned they should be, their customers needing them to be, being worried about having a personal liability against the business, to hoping to be more tax efficient.

What do we mean by a limited company?

A limited company is an organisation that is set up to run your business. A business becomes ‘limited’ once the company name and its owner(s) have been registered with Companies House and when limited status is granted, it becomes a distinct entity from its owners.

A limited company structure creates a distinct border between the business owner and the business itself, and under the eye of law, the business becomes a separate legal entity in its own right, becoming responsible for its own actions and finances.  This in turn limits the liability of the owner from any risk the business may need to take.    So if you are a small business expanding & possibly needing employees & assets, then a limited company is a good idea.

At Taxfile we are helping a lot more clients make this transition from a sole trader to limited status.

We can help you set up a private limited company, guide your through the process of what happens and what you need to do.  We offer an all-encompassing service from the setting up to filing the corporation tax returns.

We are offering a special price of £375+VAT for the following;

  • company formation (including the option to have the company phrased as a special purpose vehicle for a property rental company- SPV)
  • we will register a single director with HMRC for self-assessment
  • we set up the payroll scheme
  • we arrange your chart of accounts on online software and set up the bank feed so transactions are automatically recorded

A limited company will:

  • need to keep company records
  • report any changes to Companies House & HMRC
  • need to file an annual company tax return along with the company’s accounts, giving an undistorted view of its finances.

As a director of a private limited company you will:

  • make decisions that benefit the company rather than yourself
  • abide by the rules and regulations outlined by the company articles of association, which are written rules about running the company agreed by the shareholders or guarantors, directors and the company secretary
  • notify any shareholders if you might benefit personally from a company transaction
  • always act with the intention of making the company successful.
  • In forming a limited company you are limiting your personal liability but in doing so you cannot abuse your power with the limited liability to take selfish and unnecessary risks.

At Taxfile we can advise you on setting up a private limited company and take care of all these tasks for your private limited company — and avoid any complications down the line.

Starting a limited company is a relatively straightforward administrative task that starts out with choosing an available company name from Companies House to filling and filing a series of forms. At Taxfile we can ensure that all your forms are compiled correctly, providing ongoing support.

To set up your private limited company you will need at least one director and one shareholder.  As the business owner(s) you would then take a salary/wage from the business.  We can advise you how to best set up your salary and dividends to pay less tax.

Once you have a limited company set up you will need to open a new bank account in the name of your new company.  Our advice to clients, is to try and keep all the business income and expenses restricted within this one bank account and to avoid any personal transactions overlapping into this account.

It is also important to remember to transfer all business-related expenses into the company’s name and move any payment plans over to the new bank account.

If you would like help and advice about forming a private limited company please call us on 020 8761 8000.

TODAY is the deadline for submission of your tax return. Contact Taxfile for help filing & avoid a minimum £100 fine!

31st January was the Self Assessment Tax Return Deadline!

Today (31 January) is the self-assessment tax return deadline!

[As at 1 February 2023]: The 31st January was the Self Assessment tax return and tax payment deadline. Miss the deadline and you’ll be in for a £100 HMRC fine right away. Interest will also be charged from 1 February, as usual, if tax is not paid by midnight on 31 January (rules apply). Time is short, so contact Taxfile for help with your tax return as soon as possible please. Book an appointment* with one of our helpful tax advisors and accountancy experts TODAY — we’ll make it easy!

020 8761 8000 Book Appointment Get Started Here
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CIS sub-contractor refunds

CIS Sub-contractors – Claim Your Tax Refund Now!

CIS sub-contractor refunds

[Updated April/May 2022]: It’s now time to start the process of claiming your tax refund if you are a sub-contractor working within the Construction Industry Scheme (‘CIS’). Refunds are usually fast through Taxfile.

What you need to do

Don’t delay – book an appointment with Taxfile today by calling 0208 761 8000 and we’ll sort it all out for you. We have staff who speak English, Polish, Pashto, Dari, Russian, French, and Dutch, should you need them on the day. Our Tulse Hill office is at 25 Thurlow Park Road, London SE21 8JP. Call 0208 761 8000 for an appointment — the first 20 minutes is free! Alternatively, you can have a ‘virtual’ appointment with us on Zoom, Teams, Google Hangouts, Skype, FaceTime, WhatsApp or whatever you prefer.

Outside of London? No problem – click here.

We’re open from Monday to Saturday in April & May (including early evenings Mon/Tues)

Our Tulse Hill office is open 6 days a week during April & May and offers Saturday morning appointments plus early evening appointments on Mondays and Tuesdays if standard office hours do not suit you (please call for details).

Check List

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