Self Assessment and the Construction Industry Scheme (CIS)

Tax Returns and the CIS

If you work in the construction industry then you will come under the Construction Industry Scheme. Working under this scheme means that you will pay your tax and receive returns differently to other businesses and trades.

As a contractor or subcontractor, your tax rate is generally 20% of your entire earnings, whereas under the PAYE system, taxpayers of various other trades are provided with a tax-free threshold, which is an inbuilt allowance into their earnings. Essentially, this means that contractors would be paying more tax annually than other workers, which is where the CIS returns come in. In order for HMRC to work out how much tax has been overpaid, contractors under the CIS are required to submit a tax return. This allows HMRC to work out how much you are owed back in a return; in essence repaying the ‘tax-free’ allowance that you would not have got prior to this.

These returns can be completed from April 6^th every year, and similarly to a self-assessment keeping records of expenses can help to maximise your refund. Contractors can receive help in completing and filing these returns, however the majority of accountants or CIS rebate firms will charge a figure upwards of £350 to do this for you.

Using U-Tax

U-Tax offers two choices of payment, both at a great price. The taxpayer can opt into paying £100 plus VAT upfront, or can choose to pay when the rebate has been received at a rate of 10% of rebate (subject to £100 minimum). Through using our services, U-Tax will offer:
 ·         Your CIS return completed by an accountant
·         Thorough and comprehensive return service
·         By using their knowledge, you will receive a maximum refund
·         Payments issued by HMRC
·         Your key account manager will always be on hand