Subcontractors
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Learn moreWELCOME, WE ARE CISDONE
The Construction Industry Scheme (CIS) is a tax scheme in the UK that applies to payments made by contractors to subcontractors for construction work. The scheme aims to ensure that subcontractors working in the construction industry are paying the correct amount of tax and National Insurance contributions. It also helps HM Revenue & Customs (HMRC) to combat tax evasion and avoid any potential loss of revenue. At CIS Done, we’re here to help subcontractors in the UK handle their taxes without the fuss. Think of us as your go-to team for making tax matters simpler and easier. If you’re a contractor looking for some peace of mind, we’ve got your back.
WHAT IS A
CIS REPAYMENT / REBATE?
Under the CIS scheme, subcontractors have to register with HMRC and are subject to a deduction of 20% from their payments as an advance towards their tax and National Insurance contributions. However, they can also claim back this amount if they meet certain criteria. This is known as a CIS tax refund or CIS tax rebate.
Some of the main benefits of making CIS tax claims include:
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Reduction in tax liability:
By claiming back the 20% deduction made under the CIS scheme, subcontractors can significantly reduce their overall tax liability.
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Improved cash flow:
The refund of CIS deductions can provide subcontractors with additional cash flow, which can be reinvested into their business or used for personal expenses.
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Compliance with tax regulations:
Making CIS tax claims ensures that subcontractors are complying with the rules and regulations set by HMRC, reducing their risk of facing penalties or fines for non-compliance.
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Greater financial stability:
By properly managing and claiming back CIS tax deductions, subcontractors can improve their financial stability and plan for future expenses.
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Enhanced reputation:
Registering for the CIS scheme and making regular tax claims can enhance a subcontractor’s reputation by showcasing their compliance with tax laws and responsible financial management.
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Potential for higher earnings:
By accurately keeping track of CIS deductions and making timely claims, subcontractors can potentially increase their earnings and profits.