IF YOU ARE SELF EMPLOYED AND WORK IN CONSTRUCTION THEN YOU HAVE THE OPTION TO MAXIMISE YOUR TAKE HOME PAY AND ENJOY GREATER FINANCIAL FLEXIBILITY
How can we Help
Umbrella are registered with HMRC for CIS.
We will send you a monthly summary of gross and net payments made.
As part of our additional services Umbrella Accountants can help prepare your year-end tax return for a small additional cost.
What Tax is deducted ?
Where you have a UTR number then the normal tax rate we deduct at source is 20%.
Where you don't yet have a UTR number but can provide a National insurance Number then we deduct an emergency type rate of 30%. Any overpayment of tax will be refunded via your year-end tax return
Some subcontractors may be paid without any deduction of tax providing they apply and satisfy the HMRC requirements to do so (HMRC will confirm this to us where it is the case).
Taxation if you are a sole trader or partner in a firm
HMRC treat the CIS deductions from your invoices as up-front payments towards the tax and Class 4 National Insurance contributions (NICs) due from your business. To make sure you pay the right amount of tax for the year as a whole you'll need to submit the appropriate Self-Assessment Tax Return for your business.
When you work out the tax payable by your business, you use the full amount of the invoice. Credit will be given against the tax due for any CIS deductions that contractors have deducted. When your allowances and expenses are taken into account you may be due a tax repayment. If you owe any additional tax it'll be due by 31 January following the end of the tax year.
Can I claim tax relief for expenses?
As self-employed you are taxed under Schedule D.
Expenses do not get processed weekly against your income but you should keep a record and all receipts (including travel) so you can include them in your self-assessment at the end of the year.
Our margin is retained before calculating you tax deduction so relief is automatically given.
Further information is available at:
Why Umbrella CIS?
Your legally required insurances are provided (Public Liability).
Additional cover is available at a small incremental cost i.e. Personal Accident, Death in Service.
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