CIS tax is the tax paid under the Construction Industry Scheme, this tax is applicable to almost everyone working in the construction industry.
Under this scheme contractors must deduct money from subcontractor's wages and pay it in advance to HM Revenues and Customs.
Tax paid in advance for the subcontractor's wages is then used to pay the sub-contractor’s tax and national insurance.
If you are a subcontractor you will need to fill in an annual tax return and claim back any overpaid taxes under the Construction Industry Scheme; the average return for CIS tax is £2,500.
To make this easier, we can do this for you.
CIS Returns for Contractors
All contractors working in the construction industry have to complete and return a CIS return before the 19th of each month.
This must be done to inform HMRC of how much CIS tax has been deducted from the subcontractors you employ. After this that amount must be paid to HMRC.
Be aware that there are penalties in place for missing the 19th submission date.
Even if you only miss it by one day, the penalty is £100.
If you are more than two months late this rises to £200 and after this you can incur further charges.
As you can see, it is worth getting these forms filed in time.
That is why our professional accountants are happy to complete and file your CIS tax returns for you, click here for more information on what these services will include.