Self employed, cis

michno8

Son started self employment in July 2023 as a sub contractor. Tax gets deducted through the cis scheme. Is he able to claim any tax back this year as he was not working prior and dont believe he has to do a, tax return. Thank you 

Devongardener

He won’t be able to claim any tax back until after the end of the tax year, and he will have to complete a self assessment tax return. He needs to let HMRC know as soon as possible that he is self employed and being paid under CIS.     

Make sure he keeps all his payslips showing tax deductions. He will also need to keep records of his claimable expenses.

michno8

Thank you, so he won't be able to claim anything back for July until now. 

Dazed_and_C0nfused

michno8 said:

Thank you, so he won't be able to claim anything back for July until now. 

He can submit his first return on 6 April 2024.

Assuming he has registered his business with HMRC.

sheramber

No, he cannot get anything back until his tax reurn for 23/24 has been processed.

He will need to submit a  self assessment tax return as he is now considered as self employed.

https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/pay-tax-and-claim-back-deductions#:~:text=When you're registered with,by contractors throughout the year.

He  needs to register with HMRC   https://www.gov.uk/register-for-self-assessment

He should submit his return as soon as he can att he start of the tax year,  6 April 2024. The quickker he submits his return the quicker he will get any repayment.

 

Cinders:

You need to make sure he is registered for CIS otherwise he will be taxed at 30% rather than the 20% he should probably be taxed at (although the overtax will be reclaimed at his self assessment).