CIS stands for the Construction Industry Scheme and all tradesmen who subcontract on a construction site of any kind will most likely be registered under this scheme. This scheme is a government initiative which means that tax is collected from you monthly in advance through your wages from your main contractor. Unlike most self-employed people you will be paying tax as you go under the CIS scheme. It is the law that every CIS worker completes a UK tax return every year to declare your income and claim your expenses even if you are paying tax monthly at source.
The deadline for completing a tax return is the 31st January following the end of each year. If you are liable to complete a tax return and don't do so by this date then HMRC have large fines that they impose so please contact at your earliest convenience to ensure that this is done well ahead of the end of January. The earliest that you can submit your tax return is one the first day of the new tax year which is 6th April.
This will depend on what type of income that you receive, but generally we will need details of all of your income and receipts/invoices for any expenses that you have incurred throughout the year. We can advise you on what specific expenses you can claim based on your personal circumstances
There is no VAT to pay and so the price you are quoted is the full price with no added unexpected costs. In some circumstances it may be that you have some income documents missing and so, if you expressly request this of us we can request the information of your behalf from employers or letting agents etc. If you would like us to do this then we will charge £30 per company that we obtain information from but this will always be discussed in advance.
HMRC allows every person to earn a certain amount of money each year which is tax free before any tax is due. For the 2018/19 tax year this is £11,850 per person and in 2019/20 this has increased to £12,500.In addition to this, if you have made any Capital Gains where you have sold an asset for a profit then the first £11,700 of this is tax free in 2018/19 tax year.
This will very much depend on what sector you work in and we can fully inform you of the type of expenses which are relevant to you. Allowable expenses generally include the purchase of tools and equipment, professional fees such as letting agents or umbrella company costs, travel etc. There is a huge range of allowable expenses which will help to greatly reduce your tax bill so please contact us for more detailed information regarding your area of tax.
You can stop completing annual tax returns whenever you stop being self-employed in the UK, stop receiving rental income or cease being a company director. Other areas of tax may only require a UK self-assessment tax return on a one off basis such as Capital Gains tax so please do contact us for more specific information tailored to your circumstances.
If you have paid tax in advance through CIS and your taxable income (your income minus your expenses) is less than £11,850 for the 2018/19 tax year then you will be due all of your tax back as a tax rebate. If you have earned more that £11,850 profit then you are still highly likely to be due a tax refund and we will be able to tell you exactly how much money you will be due once we have looked at some of your basic figures.
If you have not paid tax in advance because you are standard self-employed or receive rental income then it would be unlikely that you would be due a tax rebate, but you will still need to complete a UK tax return every year.
Understanding the tax system in the UK can be daunting, especially if you are newly self-employed or a new property landlord. It may also be that this is your first time of selling an asset or working overseas. By using UK Tax Returns as your tax agent we will make sure that you are aware of all expenses that you are legally entitled to claim which will help to reduce your tax liability, or increase your tax rebate where applicable.
As a registered HMRC tax agent we have great access to specialist knowledge from the HMRC advisors through our dedicated agent line which means that we can always come back to you quickly with specific enquiries about your tax position or personal circumstances.
Our small team has 8 years of experience working within the UK tax industry and we have seen many changes to the rules and regulations along the way through the many changes in government power. From Labour, to the coalition and then the Conservatives this summer each budget announcement has made new provisions and sets out new rules and legislation for the tax system. As your tax agent we keep fully up to date with the constant changes to ensure that you are best informed.
In most cases you will be invoiced for our services after we have collected all of your income and expense figures for you, we have carried out the basic book keeping that you will need and we have fully prepared your UK tax return ready to send this to HMRC. At this stage we inform you of your tax liability and how much tax you owe, or how much you are due back.
If you owe tax to HMRC then we will invoice you at this stage and then once our invoice is paid we will submit your tax return securely online through the government’s portals.
If you are due a tax refund then you will not be required to pay up front and we will go ahead and submit your tax return online once you have confirmed all of the relevant figures. When your tax refund is released we will collect our invoiced fees and forward the rest on to you.