CIS RETURN IN ASCOT WOKINGHAM: Each month, contractors who are recognized by HMRC must submit a CIS Return. You may verify which subcontractors you paid last month and how much CIS tax was withheld by reviewing the CIS Return. The whole CIS amount withheld must be paid over to HMRC by the 19th of the month following the month in which it was withheld.
If a subcontractor has also invoiced you for materials or VAT, those amounts will be subtracted before CIS tax is calculated. You can offset the CIS you’ve suffered against the CIS you’ve deducted from your workforce if you operate as both a sub-contractor and a contractor (i.e., you provide your services to a larger firm that deducts CIS from you and also deducts CIS from your sub-contractor). This could mean you owe nothing at all, and it could also result in a refund at year’s end.
A monthly CIS return in Ascot Wokingham is an integral part of the government’s Construction Industry Scheme (CIS). The Government established CIS to assist sub-contractors in spreading their tax payments across the fiscal year and to combat fraud and tax evasion in the construction industry.
For subcontractors to be taxed under CIS, contractors must withhold either 20% or 30% of their payments to the subcontractor and remit the money to HMRC through the CIS monthly return. Before hiring your first subcontractor, you must become a CIS member. If the subcontractor qualifies as an employee, you should investigate that possibility as well. The rules for determining one’s status can be found on the HMRC website. If you misrepresent a subcontractor’s employment status on a CIS return in Ascot Wokingham, you could be fined. It is recommended that you double-check with HMRC to ensure that your subcontractors are CIS-registered before making any payments to them.