Tax return

emmy05

Hi guys, I'm really confused. Husband has been self employed, but his boss pays his tax, so I'm confused as to why Hmrc are wanting him to fill out a tax return? Sry for sounding thick. What should we be doing? Should he have been keeping receipts as if he's a business? Thing is though, he's not a business. Hoping someone can help, my brain is just muddled with it all.

Torry_Quine

He can't be self-employed if his boss is paying his tax

emmy05

He is self-employed, he's a builder. And a new thing came in, where the boss pays the tax.

[Deleted User]

emmy05 wrote: »

He is self-employed, he's a builder. And a new thing came in, where the boss pays the tax.

This 'new thing' may well be a figment if his 'boss' imagination. Self-employed people do not have a boss and they most certainly have a business. Professional advice needed, and quickly.

maisie_cat

If your husband is self employed he is responsible for his own tax return, The construction industry scheme (CIS) exists to prevent contractors being paid and not paying tax. The "boss/contractor" will normally deduct 20% from payments made to him and pass it on to HMRC. In some situations it's 30% deducted I think
When your husband completes his tax return he will gross up his income, deduct allowable expenses and input the amount of tax that has been deducted. The system will calculate the tax that he owes or is owed from that.
There are a number of situations where a tax is deducted at source and then accounted for later, it doesn't stop the payee being self employed
There is a separate issue about whether he is truly self employed but that's a different question.

agrinnall

[Deleted User] wrote:

This 'new thing' may well be a figment if his 'boss' imagination. Self-employed people do not have a boss and they most certainly have a business. Professional advice needed, and quickly.

I find it a bit hard to believe that someone of your experience in these matters is unaware of CIS. As it is your answer is completely incorrect for the OP's husband's circumstances. I can't pretent to have any in-depth knowledge of CIS but even I know if its existence, luckily maisie seems to have given the required answer.

emmy05

Thank you Maisie and agrinnall. And Maisie, I know what you mean regarding the self-employed part lol, hence why I'm in a bit of a panic, and confused about it all, but thanks so much.

[Deleted User]

agrinnall wrote: »

I find it a bit hard to believe that someone of your experience in these matters is unaware of CIS. As it is your answer is completely incorrect for the OP's husband's circumstances. I can't pretent to have any in-depth knowledge of CIS but even I know if its existence, luckily maisie seems to have given the required answer.

I know from your posts that you do not make sweeping statements but, of course I know about CIS. My post was directed at the 'new thing' to which the op referred. She also states that her husband does not have a business and should not be completing a tax return which we both know is not correct. Nevertheless I will accept your point.

TempUserName123

It sounds like your husband is being taxed under CIS. Not necessarily a bad thing as in most circumstances a repayment is due after the Tax return has been processed. This is due to CIS Tax typically being on the excessive side.