CIS – Keeping it Simple

CIS – Keeping it Simple

Sep 19, 2018

Joining CIS

You can join CIS at any time: whether at the start of your contracting career, or if you’ve been contracting for a while.  You can even join CIS if you’re contracting through your own limited company.

If you’re not yet registered, our specialist team can take you through a free Contractor Assessment to see if you’re eligible.  If you are eligible, you’ll simply need to provide:

  • Your National Insurance number.
  • A unique tax reference number for your business.
  • A VAT registration number (if you’re VAT registered).

Paying tax as a CIS contractor

Once you are registered as a Crest Plus CIS contractor, we will invoice your recruitment agency or end client for the hours you have worked.  We will then calculate and deduct the tax you have to pay on the CIS rate of 20% and then pass the net payment on to you.

You will have access to monthly payment records through our secure online portal.  At the end of the year you’ll need to complete a self-assessment tax return and it’s at this point that you can claim tax relief on legitimate business expenses. Crest Plus can undertake this on your behalf with no up-front fee required.

Self-assessment tax return

Your self-assessment tax return needs to show your full income for the year and the deductions made from each payslip including itemised business expenses.  We can work with you to complete your tax return, helping you do so accurately and on time.

HMRC will work out your tax and National Insurance bill taking into account the deductions made throughout the year.  If you still owe tax you’ll need to pay it by 31 January, or if a refund is due it will be calculated and paid direct by HMRC.

Limited company CIS

If you operate through your own limited company you will need to maintain accounts in the usual way, invoicing your clients for work undertaken and then filing accounts to HMRC and paperwork to Companies House at your year end. You can claim tax relief on legitimate business expenses.

It’s wise to set aside time to maintain your accounts on a regular basis to ensure your records are accurate and up-to-date. We can help you maintain your ongoing accounts throughout the year as well as provide support in the preparation of your year-end accounts for submission to HMRC and Companies House.

How to get help

Our specialist team is here to help make it easier to work in a compliant manner and pay the correct amount of tax, giving you peace of mind.

If you have questions about any aspect CIS contracting or paying tax as a CIS contractor, please get in touch with our expert team on 01244 684700.

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