CIS TAX REBATES EXPLAINED! (UK)

[@AndreiAlex-hw1iy]

We need more people like this

[@HeelanAssociates]

❤️

[@Dustii91]

So informative, you have my thanks! I'm absolutely baffled, as I have only recently got into the construction industry, let alone self employed. My firm had never given me any sort of paperwork or proof of income outside of a text message stating my weekly take home pay. I have since left and relocated from Essex to the Midlands. Would my bank statements/income be sufficient for a self assessment? As realistically that is all I have to go on. Thanks again🙏

[@HeelanAssociates]

If they are all you've got, that's it! Main thing you REALLY need though, is proof of any CIS tax deducted. If you don't have this, contact HMRC they can give you it (via post...)... or at least what your firm have declared to them.

[@windymiller3910]

Hi I hope you could clear this up for me as I’m confused, I’m a self employed bricklayer on the CIS scheme. What national insurance do I pay?? Many thanks

[@HeelanAssociates]

Class 2 and 4. That’s just over 10% in class 4 and say around £165 a year in class 2. Both have some allowances before you start to pay. All done on tax return.

[@trailfools4668]

Awsome, any videos coming up on transitioning to vat registration? I think I’m going to hit the freehold in a couple of months🙈

[@HeelanAssociates]

Any particular question? We do have a vat basics one that covers some of it

[@marioarachifan5670]

Hi. Is there any video on how to get back CIS rebate for companies ? This is more like for self employed. The company received payments and 20% has been deducted. I filed ct600 (haven't sent it yet) and just don't know where to introduce the taxes to result that the company is due a rebate

[@HeelanAssociates]

It's probably a bit too difficult to answer here, but CIS for companies is actually dealt with under a payroll (PAYE) scheme. You submit the amount 'suffered' each month there so HMRC are aware of it. The reclaim can then be done separately - it's actually not done in the tax return at all.

[@andrelobo4890]

Omg. You gave a good explanation about tax rebate, apart from how fast you explained everything. Definitely that is not for foreign ones understand unless we watch a minimum 5 times to try don’t miss out any relevant point. But thanks anyway.

[@HeelanAssociates]

Glad you found it useful. Dan does get excited to talk about tax ;)

[@emmanouilachladiotis5272]

Put the speed of the video slower or faster. It helps sometimes

[@cherryhintonaccountingltd4482]

Thank you for sharing

[@HeelanAssociates]

Hope it helped!

[@CommonInvesting]

Is it a legal requirement to receive a voucher?? I am self employed on CIS but I never get vouchers? I do however record my work days very well, I have a very good advanced excel spreadsheet. SO are vouchers legal/a requirement? Kind regards

[@HeelanAssociates]

Yes contractor should give you them under the requirements of the scheme, it’s super common for people not to adhere to the rules though. Bane of accountants and tax advisors lives :) If hmrc don’t agree with the figure on your tax return they will ask for the certs/vouchers.

[@DennyGiuggioloni]

Hi, thank you so much for your support first of all. I have read that you said, we have to put as turnover the money before tax for the CIS scheme. But, what about if I have been paid always after tax, where my contractor told me he would have paid my 20% taxes? Which is the right figure to put? Thanks a lot in advance.

[@HeelanAssociates]

Always turnover before CIS. It's normal to get paid after tax. Put tax paid from CIS in another box, it often gives a tax refund on the return when you do it, which is why you need the tax deduction statement to confirm what he's declared and paid to revenue for you.

[@brad1837]

@@HeelanAssociates I don’t get given these tax deduction statements, will this be a problem when doing my tax return?

[@shanepenfold9716]

@@HeelanAssociates what’s the box to put tax paid from CIS?

[@nw6477]

@@shanepenfold9716 Under the section titled “tax deductions”

[@samlungu4774]

Hi, when as a self employed paid through CIS, submit my tax return, what is the value I have to put for turnover ? the value before tax ( 20%) or the value that I have received in hand ( after tax) . Thanks

[@HeelanAssociates]

Before. You fill in the ‘gross’ in that box, and the tax taken off in another.

[@cherryhintonaccountingltd4482]

Check that cash basis accounting applies to you or standard accounting

[@brandondighton7014]

Hi, it's my 1st year as self employed I worked 7 months up until April and was paid about £13,600 gross and deducted about £2,800 tax. Do you know how much roughly I could expect back for my tax return I was under the impression I shouldn't have paid tax the 1st £12000? Would love some advice please

[@HeelanAssociates]

You might have some National insurance to take into account, and get roughly 12.5 tax free. So you ‘should’ of paid ~£1100 in tax less National insurance. So probably get back around £1500 depending on your circumstances and other expenses.

[@emmanuelowusu1413]

Hi, I have a question and I hope you can help me. At the beginning of last April I work 3 months in CIS but then I got an apprenticeship and in the apprenticeship I'm in payroll. This year I have made a bit more than 12.500. What are the chances of me getting my a tax refund for those months I worked in the CIS scheme?

[@HeelanAssociates]

Probably slim from those figures, but it all depends on if your job taxed you / what code they used. You’ve got to do a tax return either way, so do early to find out in good time.

[@ryjones8724]

I did a self assessment first time tonight...didn't have all payslips so had to give just gross total on every job I did with 4 companies over a period of January 20th - June 10th.. them payslips need to be collected so you can put in the tax deductions... Hopefully mine is accepted and the late penalty I have to pay..will they ring me if they see discrepancies ?? When will they ask for my receipts for my allowable expenditure aswell ? I hope I get an advisor ring me from HMRC..wil they do this ? Thank you

[@HeelanAssociates]

The expenses go on the tax return in self employment pages. They will only ask for receipts if they wish to inspect your tax return. To talk to HMRC you will usually need to ring then, or go on webchat. They will normally point you to online guidance. You really do need to enter the tax deducted on the return otherwise you will end up with a tax bill that likely wouldn't be due.

[@Story_Fuel]

So what do I need to do? Put the 9 percent away for my NI?

[@HeelanAssociates]

Its a tough one to answer because it depends on your total earnings. At time of writing NI is down to 6%, but if you were to hit 40% tax rate you need more. There isn't a simple answer I'm afraid on this one, it's more just being aware of what could happen. The key action is early prep of your tax return each year to understand if there is anything to pay.

[@hackit9578]

Can u explain how to correct a CIS submission if i had selected a nil return on hmrc site when the contractor was paid gross. Does Hmrc need to be notified about the full amount paid to the contractor. Can I now submit the full value of the contracts invoices in this submission period.

[@james26695]

This is my first year self employed CIS, I'm just getting 20% taxed at source, Any rebate i'm due..will it pay off the national insurance bill? Or do you have to something seperate with that?

[@lindabenson7608]

Am I right in my calculations? I pay subcontractor 1000 less 20% tax he gets £800. He then pays his subcontractor 1000 less 20% tax he gets £800. Then he pays 5 subcontractors £100 each less 20% tax giving them £80 each

[@HeelanAssociates]

Seems right maths wise but in reality it’s unlikely that you’d receive £1000 (gross) and pay that amount straight to your subcontractor, you’d normally make some money at each part of the chain.

[@monaita010]

Hi there, thank you for sharing. Could you explain what you mean when you talk about vouchers please? My husband's been CIS since Nov 2019, with one main sponsor, but has never received a voucher? Do you mean his payslip?

[@HeelanAssociates]

Vouchers is the term for what your contractor should give you every time you get paid. Sometimes this is a payslip type thing. Its important as its your proof of the tax you've paid.

[@martbernie9113]

aka invoice, will have hours done, payed and cis deductions on it, maybe more deductions such as agency or company cut

[@gazza8596]

Mate I'm totaly stuck on finding out how much tax I've paid I'm a painter self employed working cis I never get a payslip haha I only have the 20percwnt deducted amount go in to my bank so I made 11k from April last year till now so how do I figure out how much I got paid before 20percent tax deducted ?

[@gazza8596]

Ive also paid about 3grand on tools materials and ppe can I claim.that back I hear people saying

[@HeelanAssociates]

If you have things you incurred for your business it could well be they are tax deductible. One thing to think about: kzbin.info/www/bejne/pInWhJKhabKJotk

[@HeelanAssociates]

If you don't have the statements (putting to one side they legally have to give you one), if there are no materials paid back to you / it's all labour, one option you have is to *estimate* the tax. If you added everything up you received and divide by 0.80 should give you the total 'gross' sales / revenue. Then if you deduct what you got paid, that should be 20% of the gross, which is the estimate of the tax you got paid. Example. You add up and work out you received £8000. £8000 /.80 = £10,000 Therefore Tax is £2000 (which happens to be 20% of £10,000) This is no substitute for actual certificates though... and this won't get the right result if you are getting 30% deducted, they didnt deduct right tax or have materials (for example). Your other option is likely to report contractor to HMRC and request a print from their system of the figures.

[@StephenRuddick-uu4yw]

If you have been deducted cis at 20% and that adds up to £11,000 total then simply add 25% to the £11,000 this gives you the total amount earned before you have been deducted and simply subtract the £11,000 from this figure you will then have a total figure you have paid in cis tax that you can them try claim back at the end of the tax year when you work out what allowable expenses were suffered

[@woodybollox]

Hi. I started CIS self employed in mid October 2019. Submitted my tax return on 6th April 2020 with all expenses etc. So when should I get a tax rebate. Thx.

[@monaita010]

Hi there @sillysuffolk , my husband started CIS one month after you and we're preparing to do the return next week. Do you know why you haven't heard back yet? In the video it's stated it should only take them 28 days? Well... maybe Covid related delay?

[@woodybollox]

@@monaita010 yes the reason was I forgot to enter my cis tax that was stopped. Lol. Now got my tax rebate.

[@monaita010]

@@woodybollox ah, that is good. We started the process but didn't know we had to wait for a first time code... we're still waiting! 🤦🏻‍♀️ Hope it'll get here on time.

[@woodybollox]

@@monaita010 when u fill it out it will tell you at the end what you should get back. Once I emended it it was in my bank within a week. 🤪

[@monaita010]

@@woodybollox that's really good! Do you know what he meant by vouchers? Did you get vouchers, or is it just payslips he means?

[@vrossi2596]

Hi, thanks for your video ? My question is as cis ground worker with minimal expenses in general, should i use cash basis or not? Thanks

[@HeelanAssociates]

Sadly we can't advise 1-2-1 here (due to professional regulations and the need to ask a load more questions!). Generally though with CIS it can help to use the CIS deduction certificates they should give you to help complete the tax return. If you imagine your contractor has to report your tax deductions/what they paid you each month, so to make everything line up you can often use the Deduction Certificates they give you to help complete your return.

[@vrossi2596]

@@HeelanAssociates thanks for your quick reply, i do have each wage slip sent to me each week as a pdf and my totall mileage is sorted, and minimal other expenses..just wasn't if worth doing cash basis..will call your office next week. Thanks

[@franceskgjini704]

Hi Just a quick question I am doing my self assessment under CIA scheme for tax rebate , And it says to put my turnover Does turnover means the money before tax or after tax if can help me please ?

[@HeelanAssociates]

Before.

[@franceskgjini704]

@@HeelanAssociates thank you

[@aspirify]

You mean At 1:24 you said 'More in the bank than they have tax due so as a result you get a repayment'. But you mean to say more in the pot than they have due. Is that correct?

[@HeelanAssociates]

Yes sorry just my slang, but yes your terms work as well. If you have been deducted more than the tax that is due you get a repayment

[@laxmee]

hi i have received the rebate which goes into my company account. I dont know how to enter it in the books. is it an income when i receive it ?should it go as sales

[@HeelanAssociates]

Is this as a sole trader or limited company?

[@Tacticuz]

Hi dan, if i earn over £50,271 through CIS, do i need to pay 40% tax as its the higher tax bracket?

[@HeelanAssociates]

That’s right, it will be worked out on your tax return.

[@luminoth]

Thx for the video.I have one question. I work as self employed in construction ind. and I'm trying to do the tax return on my own. What is considerate income, the gross or the net that is on the payslips?

[@HeelanAssociates]

Without seeing the slip its difficult to be sure, but its very likely the income is the Gross figure. If you are getting 'CIS tax' deductions, you would entered the gross in one box, and the tax in another box your return.

[@luminoth]

@@HeelanAssociates Ok lets say I'm a painter and I get jobs through agency.I have this example of payslip: gross payment 595 GBP, company takes a margin of 10 GBP. So we have a subtotal of 585 GBP, cis tax is 117 GBP and we left with a net of 468 GBP. My question is, when I have to fill my tax return when asked about my turnover, what do I put in the box 595 GBP or 585 GBP? (my apologies but I don't have the GBP symbol on my keyboard )

[@adamherrington2638]

usually if you earn more that 30,000 per year before you're taxed your CIS deduction and the cost of material's doesn't reduce that below the 30,000 you are more than likely to be eligible for the gross tax treatment as long as yo have no major red flags on your accounts with previous returns

[@MomentsWithBrandon]

please where can I find a legal accountant

[@HeelanAssociates]

The issue with accountancy is that it’s not really regulated in the uk. So when you are shopping around ask what professional bodies they are registered with.

[@karenmaclean7914]

Useful video thank you. Can I just check out of interest if buying a van could they not claim 100% capital allowance?

[@HeelanAssociates]

Yes you can claim capital allowances on *vans* (usually Annual investment allowance). We star this because what counts as a van is interesting these days....

[@thebonkarsgamer449]

Joke been getting 5-7k a year all legit claim for everything your entitled to wake up