Make sure you do not incur penalties by failing to submit your monthly returns to HMRC. LibAbun Accountants work with numerous contractors and are equipped to deal with your needs efficiently. By making sure we are always up to date with any changes to the CIS regulations we can notify our clients quickly of any changes that may affect them.
Contractors: As a contractor, you are required to meet specific obligations under the scheme, including registering with HMRC, checking whether your subcontractors are registered with HMRC, paying subcontractors, deducting tax and submitting monthly statements confirming these payments.
Sub-contractors: If you are a Sub-contractor, your main obligation is to register with HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business name, business partners, and other relevant information.
Any contractor that you work for must determine whether or not you are to be treated as employed or self-employed for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
If you are self-employed, HMRC will register you as a sub-contractor under the CIS returns protocols and they will set you up to receive payments ‘under deduction’. This means contractors must make a deduction of tax at 20% (30% for unverified subcontractors) from the labour element of your invoices and pay it over to HMRC.
Whether you are the contractor or the sub-contractor, your LibAbun Accountancy team can help you keep your CIS affairs in order.
We’ll communicate with you before the 19th of every month asking how much you’ve paid to your sub-contractors.
We’ll then reply with your statement, letting you know how much you owe to HMRC.
Once we’ve received your approval, we’ll submit your CIS return to HMRC. Job done!
*CIS returns is an add-on service to our accountancy packages. The quote you receive will also include the cost of your accounts and tax returns.
There is a No minimum charge for our CIS returns. So for example, if you have just one sub-contractor our fee would be just £5+VAT per month.
If your CIS return is even one day late the penalty is £100, and if it’s more than two months late a further £200 penalty is applied. Our monthly automated reminders will help you avoid these unnecessary charges.
Our complete contractor service includes everything from adding and verifying your new sub-contractors, to processing your payment and deduction statements and submitting your monthly CIS returns to HMRC.
As well as handling your CIS returns, statements and how much you owe HRMC, we’ll also act on your behalf if they decide to investigate your affairs, fighting your corner to ensure you win your case.