If you are working via the Construction Industry Scheme (CIS), you’ll be required to file a self assessment tax return after your first year of trading and subsequent years. You’ll complete your tax return at the end of the tax year in April and pay any taxes that are due by the following January.
How long does a CIS tax rebate take?
between one and eight weeks
How long does it take to receive a CIS tax refund? Once your tax return is submitted, it usually takes between one and eight weeks to get your refund. The timescale does largely depend on HMRC security checks, procedures and if it as an extra busy time of year for them.
How do I check if a company is registered for CIS?
When paying a subcontractor you will need to ‘verify’ them with HMRC to check that they are registered under CIS and what their payment status is. Subcontractors can be verified using HMRC’s CIS online services or calling HMRC’s CIS Helpline.
Do you need to file a cis tax return?
Do I need to submit a CIS tax return? If you’re self-employed or you’re a member of the Construction Industry Scheme, it’s likely that you will need to submit a tax return to disclose your earnings for the financial year. Usually, HMRC will contact you to remind you that this is due.
What happens if you do not register with CIS?
If you do not register under CIS, the immediate consequence is a higher tax deduction rate of 30% (rather than 20%). But the trouble doesn’t stop there. If you fail to register for CIS, tax returns will still need to be completed. Failure to submit tax returns can lead to fines and estimated tax bills.
How do I claim my CIS back from HMRC?
If you pay CIS deductions, you must claim these back through your company’s monthly payroll scheme. Do not try to claim back through your Corporation Tax return – you may get a penalty if you do. Send your monthly Full Payment Submission (FPS) as usual to HMRC. Also send an Employer Payment Summary (EPS).
What to do if you have no cis deductions?
If your company’s PAYE bill for the period is reduced to zero and you still have some CIS deductions you have not been able to claim back, carry these forward to the next month or quarter (in the same tax year). Tell HMRC in the EPS that you have nothing to pay. HMRC may ask you to provide evidence for your CIS deductions or to change your claim.
