In order to become registered for CIS you need to be registered as being self-employed with HMRC. To be register as self employed you need to have applied to HMRC for your UTR number (Unique Tax Reference).
There are two ways in which you can become registered for CIS:
Please note that you do not receive a UTR number and a CIS number. They are the same number it’s just a case of activating your UTR number to work in the construction industry scheme. Your UTR number just gets activated/registered for CIS. Using our registration form we activate your UTR for CIS automatically.
A UTR number (unique taxpayer reference) is a 10-digit number completely unique to each and every UK taxpayer. Whether the taxpayer is an individual or part of a partnership or company, a UTR is needed to file a self-assessment tax return. You must have a UTR number to become register for CIS.
There are two ways in which you can apply for your UTR.
Click here to fill in our online application form. You will need your national insurance number (NI) and contact details to complete the form. On the form there is a box to check that sates you want to work within the construction industry (this will ensure you register for both your UTR and CIS in one go. Once you have completed the short form we will send you client authorisation form for you to sign that will allow us to speak to HMRC on your behalf and us to deal with your tax affairs.
Your UTR registration can take anywhere between 2-4 weeks from completing the initial application form. Once you have received your UTR number it can take up to 2 weeks to get it register for CIS. If you use our free registration service we will activate your UTR for CIS in the same period so you can be CIS registered in a little as 2 weeks.
Yes, you can’t be register for CIS if you aren’t first registered as being self-employed. To register for self-employment, you need to obtain your UTR first. Click here to apply for UTR.
After submitting your application it will take 2-3 working weeks to HMRC to provide you UTR.
You will find your UTR on previous tax returns and other documents from HMRC, like Notices to file a return, Payment remainders etc. If not, please call HMRC directly on 0300 200 3310. You will need your national insurance number and contact details to obtain your UTR.
Click here to fill in our online application form and we will submit your application to HMRC. Within the process we will send you few forms for signing, so sign the forms digitally to receive updates on your application status and further queries.
You can work as self-employed/sub-contractor with out UTR but with 30% tax deduction.
A contractor must have to obtain his UTR first to register and to work.
If you’re not sure of the difference between a Subcontractor or Contractor please check out our blog post here.
If you are working in construction industry, it’s more tax efficient to be registered for CIS. If you aren’t registered, you can still work but you will be deducted 30% tax at source instead of 20%.
Part or all of this tax can be reclaimed at the end of the tax year. How much tax you can reclaim will depend on your personal income and circumstance. If you aren’t sure please complete our contact form and we’ll contact, you to answer your questions.
The scheme covers all types of businesses and other concerns that work in the construction industry, including:
These businesses can be:
Under the scheme, the terms ‘contractor’ and ‘subcontractor’ have special meanings that cover more than is generally referred to as ‘construction’.
A contractor is a business or other concern that pays subcontractors for construction work.
Contractors may be construction companies and building firms, but may also be government departments, local authorities and many other businesses that are normally known in the industry as ‘clients’.
Some businesses or other concerns are counted as contractors if their average annual expenditure on construction operations over a period of 3 years is £1 million or more.
Private householders aren’t counted as contractors so aren’t covered by the scheme.
A subcontractor is a business that carries out construction work for a contractor.
Businesses that are contractors and subcontractors
Many businesses pay other businesses for construction work, but are themselves paid by other businesses too. When they’re working as a contractor, they must follow the rules for contractors and when they’re working as a subcontractor, they must follow the rules for subcontractors.
You don’t have to register if you only do certain jobs, including:
The scheme covers all construction work carried out in the UK, including jobs such as:
For a limited company to qualify for gross payment status, you must satisfy the following conditions:
HM Revenue & Customs (HMRC) will review your gross turnover for the last 12 months, excluding VAT and the cost of materials. In order to qualify for gross payment status, your annual limited company net turnover must be at least £30,000 for each director of the limited company. This calculation is based on the total turnover of the company (excluding VAT) minus the cost of materials.
If you are confident that you meet all of the requirements, you can apply for gross payments via HMRC form CIS305, in which you will fill out your company details and turnover information. Alternatively, as a client of Subcontractor Support you can notify us that you would like to apply for gross payment status. As your accountant, we can help you complete the necessary paperwork that is required by HMRC and advise you of where this should be sent.
Our support means you can be sure that your application is completed accurately and is submitted to the relevant HMRC department.
In this application process, you will need to prove that you meet the qualifying criteria mentioned above. Subcontractor Support can assist in advising you of your company turnover and helping with the calculation to check that you meet the requirements before applying.
Self Assessment & Tax Returns
Dear client, please send your payslips/CIS deduction certificates to firstname.lastname@example.org email to start working on your tax return.
Dear client, please send your payslips/CIS deduction certificates to email@example.com email to start working on your tax return. We will inform your approx. tax refund first before submitting your return.
Click here to pay your self assessment tax bill.
Yes, you can file your last years tax returns with us. Send us your income statements to firstname.lastname@example.org today.
Yes, if you are registered for self employment you must have to file your tax return to HMRC every year. If not, you will be fined up to £100 every month from the due date.
Why should I show my PAYE income in tax return
By law, any individual who is filing self assessment must have to disclose all his income earned during the tax year. If you are already paid any tax for the income this can be claimed in your self assessment.
To appeal fines, you need to submit all your pending returns to HMRC and will submit an appeal form to HMRC to remove your fines. Contact us today 020 71180097 or email us at email@example.com
Usually HMRC will take 2-3 working weeks to provide you refund. In some cases it may get delayed depending up on the refund claim and previous years status.
As per HMRC guidelines, tax preparer must have to maintain clients ID’s before submitting their tax return. If not, HMRC will fine both client and tax preparer for not following HMRC guidelines.
If you are registered for self employment you must have to file your tax return to HMRC every year. If not, you will be fined up to £100 every month from the due date.
HMRC, Fines and Appeals
Anyone that was registered for self-employment during the tax year and failed to submit their tax return by the deadline. The tax year runs from 6th April to 5th April the following year. From the last day of the tax year you have until 31st January the following year to submit your tax return. If you don’t submit it HMRC will automatically issue you a fine
There are stages to how much the HMRC fine will be. If you miss the 31st January deadline then you will automatically be charged £100. Then after 3 months you will be charged £10 every day you don’t return it.
No, HMRC has you on their computer and will automatically print and send you a fine, you will see the fines accumulating on your HMRC log in, or if we are your agent we will be able to see your tax information on our account.
You would have received a fine for not completing your self-assessment tax return by the deadline. It means that you registered to work a self-employed and therefore need to confirm your yearly earnings to HMRC’s so they can tax your correctly. If you worked under the Construction Industry Scheme (CIS) it’s likely that you are due money back. Please email us now so that we can assist you in bring your HMRC account up to date.
HMRC reserves the right to cancel the fine if and only if you have brought your tax return up to date. There are certain circumstances under which HMRC will accept an appeal. If you want to know how to appeal your HMRC fine please email us now
It doesn’t matter if you didn’t work at all. It the fact that you hold HMRC you were going to be self-employed. HMRC have you logged on their system stating you were going to work self-employed. Whilst, they may have some information on their system about you working PAYE or CIS they may not know all your income details and therefore don’t know how to treat your tax correctly. HMRC may not know if you worked or not so until you tell them otherwise or fill your tax return they will keep issuing you fines. These could amount up to £1000’s. If you want us to help you review your case simply email us with the subject “HELP”.
Firstly, it’s important to note that no guarantee’s can be given for HMRC agreeing to remove a fine you have received. HMRC will automatically issue you a £100 fine if you do not submit your tax return online by 31st Jan.
Yes, we can help you appeal against the fine but HMRC will not consider the appeal unless you self assessment tax is brought up to date. I’m afraid there is no way out of doing it. If it’s not completed HMRC will continue to issue fine’s and these can add up to £1000’s.
HMRC are understanding of personal circumstances that may lead to your tax return being filed late so provide you tax affairs are brought up to date and you reasons are accepted HMRC will cancel your fine.
Contact us now if you need further help and advise relating your CIS / Self employment tax and we’ll do our best to help you have your fine’s removed from your account.
Far from it!!!
Subcontractor Support has evolved from the Directors (Tim Chase) experience of setting up and running his own construction companies. We are not just an accountant service. We provide specific training and support for you to run your business more efficiently. Our procedures, system and software have been tailor made with you in mind.
At Subcontractor Support we take away the hassle of your running your business so you can focus on getting the work done on site.
Yes, we do the standard bookkeeping, CIS/PAYE/VAT tax returns and payroll duties like most standard accountants. But with us we actually understand your business and implement systems to make you work more efficiently. Check out what our previous clients say about us or complete our online contact form to arrange a free 30mins business review.
All of your company information is scanned into our secure servers, every invoice, HMRC letters, quotes etc. This enables you to access every file from where ever you are at any time. You tell us your user name and password word, we set your account up and then you can simply log into your company information anywhere any time.
No, we can service clients based anywhere in the UK. We will always upload your latest account details using an online service so you can always log in to see your current position no matter where you are.
If you are interested in being released from all of your paperwork worries, call us today and we can advise you on how to take those first steps towards bookkeeping/accounting freedom.
Starting a new business can be a stressful and daunting task. We are able to assess the legal structure available for the company and help you choose the one best suited for your needs. We will set you up with everything you need from start to finish so there is nothing holding you back.