CIS Return Services

If you are operating under the Construction Industry Scheme (CIS), you will need to submit CIS return in your first year of trading and subsequent years. Your tax return is typically due at the end of the tax year in April, and any owed tax bill should be paid by the following January.   

When filling out your CIS return, include subcontractor payment receipts, showing who you have paid, the payment amounts, and deduction calculation. This ensures accurate tax payments, and you will use the same information you used for construction contract verification before starting the work. 

The deductions are based on invoices paid up to the 5th of the month and are subsequently remitted to HMRC by the contractor by the 19th of that month. As a sole trader subcontractor, you can credit the tax paid to HMRC and subtract it from any tax or National Insurance contributions owed when you file CIS return. 

VAT and CIS are not the same. When dealing with CIS-registered customers, they will pay you for your services, excluding VAT, and it is their responsibility to remit the VAT to HMRC. This means you do not need to pay VAT to HMRC for invoices issued to CIS-registered customers, as the obligation for VAT payment lies with the CIS-registered customer. 

When you are a sole trader or part of a partnership, deductions suffered serve as payments toward the tax on your profits, whereas if you are a company, these deductions contribute to your company’s expenses.