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How to complete your self assessment if you’re in the Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is a process which was introduced by HMRC in order to clamp down on illegal employment and tax evasion within the construction industry. Under the scheme contractors must deduct money from the payments they make to subcontractors and pay the amount directly to HMRC. These payments go towards the subcontractors tax bill. It’s compulsory for all contractors in the construction industry to register for the scheme. It’s not essential that all subcontractors are registered but it can work in their favour being registered. If a subcontractor is not registered the amount of deductions taken from their payments will increase.

If you work as a self employed contractor in the construction industry you will need to complete a CIS tax return. It can be confusing enough completing an income tax self assessment yet alone a CIS one, so we thought we’d talk you through what you need to know.

Completing your CIS Self Assessment

You will have until 31st January 2024 to complete your CIS Self Assessment. Your self assessment is a form which you can fill in online which discloses what you’ve earnt during that particular financial year. Once you have done this it will be assessed by HMRC and they will confirm if your contractors contributions have overpaid your tax or underpaid. If you have overpaid then you will be entitled to claim a tax refund.

You will need to make sure you are registered for HMRC’s online portal which you can do here.

You’ll also need to complete an SA100.

What information will I need to complete my CIS Self Assessment?

You will need the following information to complete your CIS Self Assessment:

UTR Code – this is a unique code to you which you will be given when you register with HMRC

Full details regarding your income, if you receive money from property you will also need this to hand too.

Details of any losses which you have incurred

Details of any interest which you have earned

Total payment deductions from contractors – you should receive a statement from your contractors detailing the total amounts deducted from you each year

Any business expenses incurred

Filling out your self assessment can be rather daunting especially if it’s for the first time. It can also be worrying not knowing if you’ve claimed for everything which you’re entitled to, or if you’re claiming for things which are not allowable. We recommend getting help from a bookkeeper just like us! We specialise in the CIS so you can be sure you’re staying compliant if you instruct us as your bookkeeper.

For a no-obligation chat to discuss this further then please book in for a free discovery call.

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