Effortlessly manage your CIS Contracting accounting needs with your dedicated accountant
As a registered CIS contractor or a limited company contractor, you are taxed at 20% by HMRC, thus end up overpaying a good deal of tax each year on your hard-earned money. In fact, you even pay more tax than a regular employee under the Payroll scheme.
However, the HMRC CIS Tax return system allows you to claim back your overpaid tax. CIS tax refunds can be maximised if you properly document, and include all of the eligible expenses you have accumulated throughout the tax year.
As a CIS subcontractor you pay much more in tax throughout the year, which means a tax refund may be a bit more substantial too. A CIS specialist accountant can greatly increase your claim for a refund, using their best practices, and efficient processes, which is almost always assured when you operate under CIS.
At Heighten Accountants, we have a team of CIS Tax Return experts helping contractors and subcontractors since 2001, and have made more than 20,000 successful claims. Making a successful claim from HMRC requires a great deal of understanding of the way the Construction Industry Scheme works. Our CIS Tax specialists stay up to date with HMRC regulations, and fully understand the process from registration to making a successful claim.
I was unsure where to go for my CIS refund as I started to be a subcontractor this year. I checked with a few accontants in Walthamstow but I found Heighten Accountants very helpful in taking all hassle away from me. Actually their advice saved my time and money. I am happy.
Why choose our CIS accounting services?
Appointing a specialist CIS accountant can provide huge advantages to optimise the maximum refund capacity available to you. Here are some reasons, to choose our CIS Contracting accounting services:
- Over 20 years of experience in making successful CIS claims.
- Fixed fee price plan to avoid surprises. We offer flexible payment options too.
- Quick return submissions. Within 24-48 hours on a receipt of full information.
- Fast refund – on average our tax refunds are processed within 6 days. In some instances, HMRC may take a bit longer i.e. 10-14 days.
- Free app for your expenses – you never lose an opportunity to claim more
- One stop shop for all CIS accounting and tax needs.
- Dedicated CIS specialist accountant to support you at every step of the way.
- Unlimited free support and advice as a part of your fixed fee plan
- Extended 45 minutes free tax consultation to your friends and family
We take pride in providing full CIS services from UTR application, CIS status verifications, gross payment status, VAT, payroll, Contractor Limited Company formation, Tax investigations, compliance and many more services.
Our CIS specialist accountants strive to ensure that every deduction you qualify for is properly documented and properly filed to avoid any penalty, such as late filing or other tax investigations.
I can thoroughly recommend them…
I have been using Heighten Accountants for a number of years now and they have always provided an excellent, timely and professional service.I can thoroughly recommend them and will be continuing to use them in the future. Thank you.
Dr. Dan Martin
Founder and Business Owner
NW3 Medical Practice
Our Accounting solutions for CIS contractors
Heighten Accountants provide a full-service CIS accountancy package to contractors and subcontractors. Here is a list of our main solutions for CIS accounting needs:
Solutions for CIS Subcontractors:
- CIS Subcontractor Registration – helping you to get your UTR
- CIS Subcontractor Verification – to avoid 30% tax deductions
- CIS Tax Return Preparation and submission – to get timely refunds
- CIS Tax Enquiries – supporting and protecting you for HMRC investigation
- CIS Bookkeeping – assisting you on allowable expenses
Solutions for CIS Contractors
- CIS Company Set up – helping you in limited company formation
- Company Verification – HMRC company and subcontractor verifications
- CIS Gross Payment Status – receive gross turnover without any deductions
- CIS Company VAT – assisting you in Registration and quarterly returns
- Sub-contractors Payment Slips – include payroll & CIS tax calculations etc
- HMRC Refund – claiming company’s overpaid tax
- CIS Company Accounting Services – include Accounts and Corporation Tax
- Companies House Reports – include Registered Office & Secretarial Service
- CIS Bookkeeping & Software – include MTD compliant cloud bookkeeping
With specialist experience within the construction industry, our CIS specialist accountants can assist in the specialist tax rules applied to companies operating within the construction industry.
Our expert team specialize in supporting contracting firms and subcontractors prepare CIS tax returns, accounts and other paperwork needed to keep them HMRC compliant.
How our accounting service works
Our CIS accountants and tax advisor have specialist skills in advising individual sub-contractors, contractors and CIS limited companies to help maximise their overpaid tax claims, make them HMRC compliant and bring happiness through expert advice and by taking accounting hassle away.
We understand that accounting needs vary for contractors and subcontractors. Our CIS accounting services are therefore, tailored on different levels to support individual sub-contractors, CIS start-ups and established constructions firms.
- Book a free consultation with us to discuss your CIS tax matters
- Get a Custom Fixed Fee Plan for your CIS accounting and tax needs
- Achieve your desired happiness and financial freedom
If you are looking to change to a CIS specialist accountant then Our ‘Switching Made Easy’ service allows you to move your accounting with us hassle free.
During our Initial ‘Getting to know you’ Meeting, we’ll discuss your specific CIS tax and accounting needs, and let you know how we can help you best. We will spend time with you to fully understand your needs and tailor a bespoke solution and fixed fee plan for you.
The overall journey with us will look like as follow:
- You’ll accept the tailor-made personalised proposal
- You’ll be assigned with a dedicated CIS accountant
- Discuss your CIS payment slips and allowable deductions
- For Contractor companies we will set you up online for cloud bookkeeping
- Bookkeeping, compliance & statutory reporting (tax return) is done
- Have unlimited advice on tax savings and financial growth
By trusting Heighten team your CIS accounting will become seamlessly effortless and hassle free. We keep your CIS company admin to a minimum, and assist you making your CIS firm a happily successful construction venture.
Professionalism, Quality, Responsiveness, Value
I have been working with them for last 20 years for my personal, business, tax and accounting work. I have found them very professional and resourceful. Initially, I found them a bit pricey but they justified their fee by bringing a lot of value to my business. I appreciate the support from their passionate team and have already recommended them to most of my business friends.
Innovative Constructions & Build
Accounting tips for CIS contractors
- Claim early – submit your CIS tax return early and get your cash back quicker
- Get CIS right – do registration & verifications on time to avoid paying too much tax
- Keep payment slips intact – request year end summary from your contractor/s
- Choose specialist accountants – avoid CIS admin nightmares and save in tax
- Stay compliant as a contractor – pay and submit reports to HMRC on time
- Use expense app – don’t lose by storing your expense receipts easily at one place
- Claim all expenses – maximise your rebate
What expenses can I claim on CIS tax Return?
- Car, van, travel & subsistence such as lunch
- Tools, drills, rent & storage costs
- Reflective vests, protective gloves, shoes & safety helmets
- Home office allowances covering costs for utilities, mobile and internet bills
- Builders’ liability insurance, union fee & accountancy fees
- Low earner trading allowance & other administrative costs
Keeping track of all your statements, expenses, and possible deductions is crucial. Use Dext or similar mobile app to help you saving photos of all expenses like at one place so you do not lose any receipt and get the higher tax refund you deserve for CIS tax.
From my experience with Heighten I…
From my experience with Heighten I would recommend them to family and friends. They are polite, professional and very reliable and get the job done very efficiently.
CIS Contractors and subcontractors FAQ’s
There are two components of the Construction Industry Scheme (CIS), one is being a contractor’ and one being a ‘subcontractor’. It is also possible to be both a contractor and subcontractor at the same time.
If you are taken on by a contractor as a self-employed worker to perform some construction work, it is more likely that you are a subcontractor. You can choose whether or not to register under the CIS. However, if you choose not to register, then the government will tax your income at source at a rate of 30%.
If you are engaging other self-employed workers doing construction work then you are a contractor and must register under the CIS. You can find more information on who counts as a contractor or subcontractor on GOV.UK.
You may verify your subcontractor status using the following approaches:
If you are CIS limited company contractor then you or your accountant would require the following information to verify your business:
For your company subcontractors you also provide their name, UTR, NINO and trading details depending on whether they operate as a sole trader, partnership or company.
Accountants can also do the verification on your behalf. If you’d like us to help with the process, give us a call on Heighten Accountants London hotline 020 3900 2424
You can apply for gross payment status either when you register for the CIS or at a later date. This means contractors will pay you in full, without deductions. You’ll pay all your tax and National Insurance at the end of the tax year.
To qualify, you must pass some tests. You’ll need to show HMRC that you’ve paid your tax and National Insurance on time in the past and you do construction work in the UK through a bank account. HMRC will also look at your turnover for the last 12 months; your turnover must be at least £30,000 if you’re a sole trader or sole director. Company with more than one director or partner requires £30K each or £100K for the whole firm.
If your firm is controlled by 5 people or fewer, you must have an annual turnover of £30,000 for each of them. Turnover is exclusive of VAT and the cost of materials.
If you are a self-employed CIS subcontractor, claiming tax back is rather a straight forward process as far as you keep your record intact. You claim your overpaid tax by preparing and submitting your CIS tax return to HMRC.
You document all of the tax suffered by you throughout the year. You provide all payment slips from all contractors you’ve worked during the year as well as a complete list of all of your expenses. Your tax is recalculated on the tax return for a claim.
Bank Account details are required for a fast cash refund paid directly to you or your nominee. You can also choose to receive back a paper cheque, which will likely take a bit longer.
If you operate under a CIS limited company the process of claiming back the CIS tax is different and it is done through PAYE scheme. If you are on a gross payment status you also pay HMRC monthly for your subcontractor CIS tax. At the year end a net claim is made to HMRC after considering your all tax liabilities such as payroll, CIS and corporation tax.
How long would it take to get your subcontractor CIS tax refund depends on a few factors:
Contractors give you a monthly statement and yearend tax summary of what they’ve paid you and the deductions they’ve made to help with your CIS year end accounting.
If your record is all intact, it typically takes HMRC 5-10 working days to process CIS tax refund. They may hold the refund for longer if your return is held for additional security checks. The time of year you submit your CIS tax return also matters, April is generally the best time to claim and get the rebate within two weeks.
Filing online through HMRC approved software and providing bank information for deposits can certainly speed up and secure your refund.
If you are a contractor and hire CIS subcontractors for your construction business then you need to deduct CIS tax from your subcontractors and pay these deductions to HMRC every month.
The rate of deductions varies depending on subcontractors’ registration status. You or your accountants can get a verification reference number from HMRC which will tell you how much tax to deduct when you pay them.
The verification number is generally in the format of V followed by 10 numbers, such as V123456789. The verification number acts as your proof that you are deducting the correct amount of tax.
Based on HMRC’s verification response, the rate of tax you need to deduct from your subcontractors will be:
HMRC CIS investigations, determinations and reviews cover many areas all of which can have serious consequences. Here are a few areas, HMRC may chose to trigger investigations and issue notices:
You should expect the following while seeking help from our professional CIS investigation expert:
Heighten Accountants have extensive experience of dealing with these demands, disputes and notices including reviewing evidence presented by HMRC and examining the way HMRC have carried out their investigation so that negotiations can commence to deal with the problem. Please contact us if you are looking for CIS tax advisors who are specialise in resolving people’s problems with HMRC.