A Quick Introduction To The CIS Tax Return Process
A contractor, sub-contractor, or an organisation that has a high annual spend on contraction, may be registered with the CIS and have a Unique Tax Reference number verified by the HMRC. These individuals file a CIS Tax Return which can often result in their overpaying a significant amount on taxes. The HMRC normally withholds 20% on the income of individuals who are part of the CIS scheme.
Since there are many deductions allowed for construction workers and the self-employed, it will be helpful to work with professionals who know this complex area of UK taxes and can help you to get a tax refund. Tax relief for construction workers include tools, protective clothing, maintenance of tools and clothing, the cost of travel if you use your own car and travel between sites, and contribution to a personal pension plan.
Self-employed contractors or construction works also receive relief for work related insurance, rebates on workwear, uniforms and tools and any other expenses that are wholly and exclusively incurred during the course of business. The UK tax year starts on April 6th and ends April 5th of each year, and must be submitted no later than January 31st to avoid HMRC penalties.
HMRC forms are available online and can be completed by individuals, however it can be very time consuming and you must know the right questions and correct process for completion to take full advantage of reclaiming overpayment of taxes. Therefore, it is many people find that working with professionals that are knowledgeable of the CIS and PAYE schemes is often much less stressful for assuring that the form are completed properly and all benefits available are received.
The company you work with will have Chartered Tax Advisors and Chartered Certified Accountants. They will also have a Data Protection Licence and maintain Personal Indemnity Insurance that will protect your from any errors made by the company. If you have not used professional assistance before, you may be able to reclaim overpaid taxes for up to six years prior to the year you are filing.
Professional tax firms charge fees that may include a flat fee or percentage of your return. They also offer different options for payment that include taking their fee from your return. In most cases, HMRC withholds 20%-30% of the income of a person on the CIS scheme. With a professional preparer, an individual will normally find that they are overpaying a significant amount on their taxes and receive a refund for a majority of the money they have paid.
When you are preparing to meet with your tax representative, having all of the receipts for expenses throughout the year will help them to more quickly complete your forms. If you have lost receipts or do not have them for another reason, the representative will be able to provide you with the steps for getting the proper documentation to claim the deduction.
Completion of the forms normally takes a few days, at which time your return is submitted by the professionals you are working with. After the forms have been filed, you will receive the refund within two to eight weeks. Having your CIS tax return completed by professionals will save you time, money and worry when you find individuals that are knowledgeable and experienced.
A CIS Tax Return is applicable to sub-builders and builders in many types of construction operations. Finding qualified professionals to prepare and submit CIS Returns is simple and quick if you know where to search.
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