At this time of year, you may overhear other workers on a construction site talking about doing their tax return. This is because they are taxed under a scheme called CIS. But what is CIS tax? And should you be paying it?
The Construction Industry Scheme (CIS) is a tax scheme where contractors deduct money from a subcontractor’s payments and pass it straight to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme, subcontractors don’t. However, subcontractors’ deductions will be taken at a higher rate if they are not registered.
Subcontractors must complete a tax return every year and submit it to HMRC. Subcontractors are usually due a tax refund and can also claim back expenses. GM Accountancy is dealing in CIS Tax refund and you can contact us in case of any query.