Avoid Confusion, Claim Your CIS Tax Refund
What is the HMRC Construction Industry Scheme (CIS)?
Introduced in 1999, the HMRC Construction Industry Scheme specifies the rules in which self-employed workers within the construction industry are paid. The schemes intention was to reduce and prevent the ‘cash in hand’ culture that was so common within the construction industry.
How Am I Affected?
If you work as a self-employed subcontractor within the construction industry and you have registered for the HMRC CIS scheme, when you get paid from your contractor they will deduct 20% and pay this over to HMRC. If you have not yet registered, you can do so on the HMRC website here.
Failure to register with HMRC will result in your main contractor stopping you 30% tax payable to HMRC.
Therefore for every £1 you earn 20p is paid over to HMRC, and as a result you pay a lot more than you should do. This should be visible in your CIS Statement of Payment weekly or monthly.
In order to receive a refund on the overpaid tax you will be required to submit a self-assessment tax return to HMRC, which U-Tax can help you with.
How Much Can You Help Me Claim from HMRC?
The amount of your HMRC CIS Refund depends on the amount you earned on the CIS scheme combined with the amount of allowable expenses stated in your HMRC CIS Tax Return. Expenses such as protective clothing, general administration, travel and the cost of premises could all be tax deductible.
- Your personal allowance 2012/13 is 810L set my HMRC, meaning you can earn £8100 tax free
- With an average CIS Refund of £1500 and the possibility of claiming back for the past 4 years, you could be owed thousands from HMRC
- Ensure you keep records of all your expenses
- If you are unsure about some of your expenses, don’t be afraid to ask us – they may be tax deductible. HMRC have produced a list of allowable expenses which we have an excellent knowledge of.
How Can I Claim My CIS Refund?
We understand that claiming your CIS refund can appear confusing and time consuming, so why not leave all the hassle to us. After contacting U- Tax, one of our dedicated account handlers will work with you to establish the necessary details to make sure that you claim back the maximum tax refund due to you. After a quick discussion and your details taken, we fill out the required paperwork using HMRC approved software and submit your claim- corresponding with HMRC on your behalf. Claim back your CIS refund today, contact U-Tax on 01564 774 242
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