Certax Accounting Bolton LTD
 

What is CIS tax and does it apply to?

CIS applies to most workers in the construction industry. If you are a contractor you will need to deduct CIS tax from your subcontractors and submit CIS Returns to HMRC. If you are a subcontractor you will need to complete a tax return and claim your CIS refund (if applicable).

We offer our accounting service to both contractors and sub-contractors

Contractors   Sub-contractors

Construction Contractors

If you are a contractor within the construction industry then you will have to submit a CIS Return before the 19th of each month. A CIS return lets HMRC know how much CIS tax you have deducted from your sub-contractors and therefore how much you owe to them.

Unfortunately the penalties for late submissions are high. If it is one day late the penalty is £100 and if it is more than 2 months late a further £200 is payable with further penalties the longer it remains un-submitted. This is why it is very important that you put in place arrangements either yourself or for a professional to complete your CIS Returns on your behalf.

If you ask us to complete your monthly CIS Returns we will carry out the following for you:

  • Adding and verifying your new sub-contractors
  • Processing of the payment and deduction statements
  • Submission of the monthly CIS Returns
  • Automated email reminders to inform you when your CIS Returns are due
  • Representation in the event of a CIS enquiry from HMRC
  • Correspondence with HMRC on your behalf
  • Unlimited help and advice regarding your CIS Returns

What is the process?

If you appoint us to take care of your CIS requirements we will ask you to complete a short form to let us know the key information about your business and your sub-contractors. Once we receive this form we will then set your business up on our software ready to process your CIS Returns each month.

Once you have received our automated reminder each month you then email us with how much you have paid to each sub-contractor and we will reply with your CIS statements and a summary of how much to pay to HMRC. If you are happy with everything we then submit your CIS Return for the month. It’s as simple as that!

So how much does all this cost?

All of this and more is included in a fixed fee of £3 per statement per sub-contractor (£12 per month minimum charge). So for example, if you have 6 sub-contractors our fee would be just £18 per month.

Construction Sub-contractors

If you are a sub-contractor in the construction industry you are required to complete a personal tax return each year. The tax return tells HMRC how much you have earned, how much expenditure you have incurred and how much CIS tax you have already paid.

As a sub-contractor it is likely you are entitled to a tax refund each year as you will have paid more in CIS tax than you owe to HMRC.

If you ask us to act on your behalf you can expect the following benefits:

  • Completion of a full set of accounts for your business
  • Submission of your tax return
  • Overseeing the process for your repayment
  • Your own dedicated accountant
  • Representation in the event of a tax enquiry from HMRC
  • Unlimited help and advice throughout the year from your accountant

What is the process?

If you ask us to take care of your tax return we follow a thorough process that ensures that your tax return is accurate and that as a sub-contractor you receive the biggest tax refund possible.

The process is as follows:

  1. We will ask you to complete a short client registration form which authorises us to act on your behalf
  2. We send out automated reminders that let you know when to send your records to us. If your records are electronic they can be emailed to us or if you keep paperwork it can be sent to us through our free, pre-paid mail service
  3. We will then complete your accounts and tax return within 14 days of receiving your records
  4. Before completion, the work will be double checked by another Senior Accountant who will ensure that every possible expense is claimed to ensure you get the maximum tax refund available to you
  5. We send a copy of your accounts and the resulting tax return for you to review and approve
  6. Your refund will then be paid to you on the same day that we receive it from HMRC

We realise that you probably want your tax affairs to be as hassle free as possible which is why we have developed our industry-leading streamlined way of working. It couldn’t be easier.

Common questions we are asked by sub-contractors

Q
How long will my refund take to come through?
A
We submit everything electronically to ensure you receive your refund as quickly as possible. However, the speed in which HMRC pay out CIS refunds can and do vary. This is why we have an internal system in place that monitors your refund and chases up HMRC periodically if your refund has not been paid. Refunds can take anywhere between 7 days to 6 weeks.
Q
Do you take a percentage of the refund as part of your fees?
A
No, unlike a lot of companies that process CIS refunds we do not take a percentage of the refund. Instead we take a flat fee (outlined below) that reflects the amount of work that we carry out.
Q
What expenses can I claim for to increase my refund?
A
There are many different types of business expenditure you can claim for, some types are obvious and some are a little less so. Put simply, if a cost has been incurred in order for you to carry out your work then it is usually claimable. There can be expenses that you may not think of, and that’s what we’re here for. We will ensure you claim for everything possible and not a penny less!
Q
My records are incomplete, can I still claim for my expenses?
A
We have many clients in the construction industry and incomplete records are very common. We have ways and means of calculating your income and expenses if we do not have the necessary records which means that you will not over pay tax. We will also help you get on track with your record keeping so that it is not a problem going forward.

How much does all this cost?

For a sub-contractor we would charge £19.50 per month for the accounts, tax return and everything noted above.

If you do not complete your own bookkeeping then there may be a small additional charge to carry out this work for you also. To see exactly what we include and to get an instant personalised quotation please use the link below. You won’t be disappointed!