When it comes to filing construction industry schemes returns, it can be hectic especially if you are new to this. It has numerous processes that need to be followed to ensure that you maximize on your rebate. Whether you are a contractor or a sub-contractor, it is advisable to prepare and file your CIS tax returns as early as possible to avoid penalties from the HMRC. The HMRC are the ones that determine your eligibility to work under the CIS and will protect you and your company from unnecessary losses and deductions imposed on. However, any delay of the tax return can cost you and therefore you need to be punctual and prepared. Here are some tips to help you prepare your CIS tax return:
- Register with the CIS and HMRC. If you are not a registered member or it is your first time, the first step is to get recognized is by registering. It is easy to register as it only requires a few personal details and your unique tax reference number. This number is important as it is the one that HMRC recognizes you by. You need to be specific with your employment details and only the truth so that your eligibility will be known. Once a member, you will complete an SA100 form and a self-assessment tax return test.
- Keep track of all your receipts. The receipts play an important role to determine how much tax rebate you get and also the amount you have spent. This way it will be easy for you to give an exact estimate and the vetting will be easy. It will also ensure that you don’t leave out any useful information that could have been of benefit to you. The receipts need to be properly stored and filled to make the work easier and faster.
- Consult with professionals in tax rebate services. As easy as it may seem, filling CIS tax returns can be very challenging. You may end up incurring extra cost without the help and guidance of professionals. This is true especially if you are a newbie. This is why I recommend consult from the best UK CIS Tax Rebate Services who are professionals in this field. They will help you get the most from filing your returns to ensure that you are fully compensated for.
- Update your details daily. Details such as millage are important on your CIS tax return. They can help you generate a good tax rebate and therefore continuous update will be to your advantage. The reason as to why you need to be continuously updated your work is to ensure that you do not forget or leave out any detail. It also shows you are focused and careful of your work and keeps you organized.
- Know the deduction rates and fines. The deduction rates differ from one person to the next depending on your registration. If you are deducted more than 30% it means that you are not properly registered and could be fatal for your business. The appropriate deduction is up to 20% or less. There are fines in delay of tax returns and therefore you should be very careful.
With information from right sources and help from trusted professionals, completing your CIS tax returns will be like a walk in the park. Technology has done a lot of advancement and all these tax filing stuff has been sorted with these. You just need to follow certain steps explained above and you are done.