London 1st offers a personal tax service for CIS contractors, Land and Property owners, please see self assessment services.
If you are working in the construction industry scheme (CIS), here are some details on what you need to do and how it all works.
Special rules apply to subcontractors in the construction industry and if you are working in the industry, you may be required to register for CIS (Construction Industry Scheme).
CIS is a system devised by the government for taxing self-employed contractors in the construction industry. If you are a contractor in this industry you will often not be able to be employed unless you are CIS registered.
The HM Customs and Revenue website has more detailed information about the Construction Industry Scheme.
To register for CIS you have to also register as Self Employed and you will have to fill in a tax return at the end of the year on 5 April.
Your employer or client will deduct 10% tax before paying you your net pay and issue you with a voucher. Ensure that you keep these vouchers, as you will need to put these on your self-assessment tax return as proof of the tax you have paid. In some cases you may be due a tax rebate and in others you may have to pay more tax.
You should keep all receipts for any expense that you incur as these can be put on your tax return to reduce the tax that you pay. Make sure you know what your obligations of being self employed are.
If you want to register for CIS or as a sole trader or do any work as self-employed, you will have to register as self-employed with HM Customs and Revenue within 3 months of starting to trade. Failure to do so could result in a penalty of £100.
You can do this by completing a form CWF1 or calling your local HM Revenue and Customs office. If you would like us to assist you with the process we can assist you for a fee of £70.