When working through the Construction IndustryScheme (CIS) or working as a self employed you will be required to complete a self-assessment tax return after your first year of trading.
Your tax will be deducted at source from your wages at the rate of 20% in accordance with CIS guidelines. These funds will be paid to HMRC on your behalf, and will be ‘on account’ for when you come to complete your self-assessment tax return. If you require any assistance with your tax return, ACCOUNTICA is able to complete this on your behalf.
The benefit of working as a self-employed subcontractor under the CIS is that you are able to offset your work related expenses against your tax which has been deducted at source throughout the tax year. When these expenses are offset against the tax which has been collected there is a good chance that you will receive a tax rebate.
You will receive a notification from HMRC when you need to complete your self-assessment and this can be done online by you or by ACCOUNTICA. You will complete your tax return at the end of the tax year in April and if there is any tax due, this will need to be paid in the following January.