CIS Have not got money to pay tax

elivia

Hi
My husband is a self-employed bricklayer with the CIS scheme. We have been very naive thinking that where tax was taken at source we would not have to pay any more tax and would possibly even get a rebate. It turns out that my husband will end up owing £3500 in tax and NI and we have no way of paying it.
Has anybody any advice on how we can cut the amount of tax owed. We are struggling financially at the moment as my husband has been in and out of work for the last couple of months and it doesn't look as if things are going to get any better. I've read on other threads about people claiming back expenses but unfrotunately we have not kept any receipts

I would be grateful for any advice
Thanks

fengirl_2

OK, there may be other ways in which he could substantiate expenses to set against his self employed earnings. The obvious one is travel to and from work -does he have a record of where he worked throughout the year? If so, he could calculate the business miles covered and include an allowance of 40p pm for the first 10,000 business miles and 25p per mile thereafter. Secondly, materials. Have any of these been purchased by cheque or creidt card and can the payments be traced from the statements? Thirdly, the use of a room at home as an office. He can include a proportion of utlitlities in his accounts.
Important thing is to talk to HMRC if he is having trouble in paying - be open about current household income and expenditure and negotiate payment by installments.

morgani

Did all income earned throughout the tax year have tax deducted at source through CIS.

Even with no expenses you would ony be required to pay the class 4 NIC.

How was the figure reached, did you calculate this yourself?

Kez100

Does this include a payment for next year on account? It may be appropriate to postpone some of it.

You ought to try and put together his accounts to date and then add an estimate through to his year end to see if you think his tax next year will be as high.

To get it right it is a proper advisor you need really as they can check your estimates and accounts, as interest can be added if you postpone payments on account and shouldn't have.