Construction Industry Scheme (CIS) tax
The CIS tax system affects most businesses and self-employed workers in the construction industry. It is a complex piece of tax law, which essentially requires contractors to withhold tax from their subcontractors at the point of payment.
Contractors are required to report these deductions every payroll month through the online CIS reporting system and pay the correct amounts to HMRC. They are also obliged to provide a certificate to subcontractors showing the amounts earned and tax deducted.
Subcontractors are required to be a registered business or self-employed, and to submit a tax return each year. They report their total income, are allowed certain business tax allowances, and can offset the CIS tax deducted against their tax liability.
Accounting Kiwi specialise in CIS tax matters. We help contractors ensure their CIS deduction and reporting system is up to scratch, generally incorporating this process with the bookkeeping system.
We work with subcontractors to ensure they maximise their legal tax deductions and maximise any tax refund.
Because CIS tax deductions from company income affects cash flow we help clients minimise the impact through planning and applying for lower CIS tax rates.
Great bookkeeping systems are a pre-requisite to making CIS a simpler and less stressful process, so get in touch with our staff to find out how we can help you
If you are providing your personal services through a limited liability company then this will affect you. Tax law is evolving and it is more vital now than ever before to understand your position regarding IR35.
We specialise in working with professional contractors and understand the complex rules in this area. Our service includes a contract compliance review
by a respected law firm specialising in IR35. This will enable you to structure your contract correctly and to start working knowing the likely tax impact.
We support our contractor clients with full bookkeeping, accounting, company and personal tax services, VAT and payroll. See our accounting services
page for more information.
Get in touch with Accounting Kiwi today for IR35 and CIS tax and accounting services for your business. We also help you with business development
services for your company.