Each time you are paid by your Contractor, they typically make a deduction – usually of 20% – which is paid to HMRC under the Construction Industry Tax Scheme (CIS) towards your tax bill for the year. You then have to submit a self assessment tax return to show income and related costs and, if the tax and National Insurance due is less than has been deducted, you get a rebate.
As a subcontractor, if you are in business and for the 2016/17 and 2017/18 tax years, you will have to complete a self assessment tax return as normal.
Tax is calculated on the value of invoice submitted to your contractor before CIS deductions but after allowable deductions. Depending on how much profit you make, there could also be National Insurance to pay.
We can provide you with the tools that you need to keep your records and can prepare your tax return for you. We can calculate your profit, and therefore tax payable, and in the event that the tax and National Insurance due is less than the CIS deducted throughout the tax year, we can request the difference is paid to you as your tax rebate.
Our fees will depend on skill and time but they start from as little as £150 + VAT.
From April 2018 if your turnover is more than £85,000 you will have to comply with the requirements of Making Tax Digital where your earnings will have to be added to your digital tax account on at least a quarterly basis. Again, our fees will depend on skill and time but will start from £50 + VAT per quarter.