CIS Scheme (tax)

[Deleted User]

serpico100 said:

2143lewis said:

serpico100 said:

You also won’t need the company’s tax code as that is only needed if you paid tax through PAYE. HMRC will have records of the amount of tax paid through your brother’s UTR number which I assume he has? The important thing is to have records of his gross payments and tax paid each week. If he doesn’t have ‘payslips’ of any description, the tax paid is easy to work out from his net payments.

Yes, He had to fill in a subcontractor form and give over his CIS and UTR numbers. 

He has the amount of gross paid every 2 weeks from his statements. 

It looks like he’s now ready to fill in his self assessment form then. How much tax refund he gets will obviously depend on any other income he had in the tax year, if any. Good luck

Yes - but as I mentioned previously, the employment section must not be completed - the self-employment section is relevant, Many subcontractors refer to the company that they work for as their employer which is not really the way to think for tax purposes and so I very much share Jeremy’s concerns on the employment status. 

2143lewis

Hi.

Trying to do this just now. 

Under the section of income do I add the total income before tax here? 

Then under the 

Tax deducted for Myself

Deductions on payment and deduction statements from contractors - construction industry subcontractors only: (optional)

Take off the tax that was deducted ?

Apologies just don't want to submit this and make a mess of it. A lot of sections aren't explained very well.

[Deleted User]

That’s where you put CIS deductions. Income should be entered in ‘your turnover’ in box 9. Can the trading allowance of £1000 be claimed in box 10.1 if you don’t wish to claim actual expenses? (See hard copy below for reference)

As usual, I will say - if you are not certain that the information is correct in all respects, don’t submit it. An accountant’s fee could save you a lot of pain in the future.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

Dazed_and_C0nfused

[Deleted User] said:

That’s where you put CIS deductions. Income should be entered in ‘your turnover’ in box 9. Can the trading allowance of £1000 be claimed in box 10.1 if you don’t wish to claim actual expenses? (See hard copy below for reference)

As usual, I will say - if you are not certain that the information is correct in all respects, don’t submit it. An accountant’s fee could save you a lot of pain in the future.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

^ ^. This is very very good advice ^ ^

A very common error is people think a Self Assessment return is (just) to declare their self employment income (and CIS tax deductions).

It isn't, it's to declare all taxable income for the tax year in question.

So if he was paid as an employee or received some interest then that needs to be declared as well.

Jeremy535897

[Deleted User] said:

That’s where you put CIS deductions. Income should be entered in ‘your turnover’ in box 9. Can the trading allowance of £1000 be claimed in box 10.1 if you don’t wish to claim actual expenses? (See hard copy below for reference)

As usual, I will say - if you are not certain that the information is correct in all respects, don’t submit it. An accountant’s fee could save you a lot of pain in the future.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

Plus an accountant will often save you more than the fee by pointing out items you can claim tax relief for.

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

That’s where you put CIS deductions. Income should be entered in ‘your turnover’ in box 9. Can the trading allowance of £1000 be claimed in box 10.1 if you don’t wish to claim actual expenses? (See hard copy below for reference)

As usual, I will say - if you are not certain that the information is correct in all respects, don’t submit it. An accountant’s fee could save you a lot of pain in the future.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

Plus an accountant will often save you more than the fee by pointing out items you can claim tax relief for.

Indeed - although given that the employment status may be open to question, the trading allowance may be the best one could hope for. 

Jeremy535897

[Deleted User] said:

Jeremy535897 said:

[Deleted User] said:

That’s where you put CIS deductions. Income should be entered in ‘your turnover’ in box 9. Can the trading allowance of £1000 be claimed in box 10.1 if you don’t wish to claim actual expenses? (See hard copy below for reference)

As usual, I will say - if you are not certain that the information is correct in all respects, don’t submit it. An accountant’s fee could save you a lot of pain in the future.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

Plus an accountant will often save you more than the fee by pointing out items you can claim tax relief for.

Indeed - although given that the employment status may be open to question, the trading allowance may be the best one could hope for. 

I think he has to proceed on the basis that he is a self employed subcontractor. If he isn't, the trading allowance is not available, although some expenses might be able to be claimed, like mileage.

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

Jeremy535897 said:

[Deleted User] said:

That’s where you put CIS deductions. Income should be entered in ‘your turnover’ in box 9. Can the trading allowance of £1000 be claimed in box 10.1 if you don’t wish to claim actual expenses? (See hard copy below for reference)

As usual, I will say - if you are not certain that the information is correct in all respects, don’t submit it. An accountant’s fee could save you a lot of pain in the future.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062497/sa103s-2022.pdf

Plus an accountant will often save you more than the fee by pointing out items you can claim tax relief for.

Indeed - although given that the employment status may be open to question, the trading allowance may be the best one could hope for. 

I think he has to proceed on the basis that he is a self employed subcontractor. If he isn't, the trading allowance is not available, although some expenses might be able to be claimed, like mileage.

Sorry - what I meant was that, by simply claiming the trading allowance, there is less likelihood of scrutiny than there would be if detailed expenses were claimed. Given the status issue, this might be advisable.

Jeremy535897

Do you think so? My admittedly limited experience of CIS investigations is that they focus on matching the income and tax with what the contractors say they have paid, rather than the expenses side, but I guess I can't argue with the logic of what you say. Very low likelihood, though.