How does it work? You need to be a sub-contractor working for one company predominately. The lender will then take the last 3 months CIS Vouchers where your tax has been deducted at 20% at source by your employer. They will take the gross value of the CIS Vouchers and they would then annualise this amount.

What is the deadline for CIS returns?

Deadlines. Send your monthly returns to HMRC by the 19th of every month following the last tax month. Example If you’re making a return for the tax month of 6 May to 5 June, it must reach HMRC by 19 June.

What should be included in CIS return?

The CIS monthly return must include all subcontractors. It does not matter if they are gross 0%, net 20% or higher 30% they are all included on the return. For more information see our blog CIS tax rates. Tip: Don’t forget to include subcontractors with 0% tax deducted.

Is CIS a legal requirement?

You must register for CIS before you take on your first subcontractor. You must check if you should be treating the sub-contractor as an employee. HMRC has guidelines on status. Before making any payments to sub-contractors, check with HMRC that they are registered with CIS.

What can I claim back on my CIS tax return?

On your CIS tax return, you can claim for any work expenses that HMRC consider to be allowable for tax relief….HMRC accept:

  • Invoices.
  • CIS statements of earnings.
  • Mileage log books.
  • Cash books.
  • Bank statements.
  • Purchase receipts.

    How do I submit CIS to HMRC?

    Send your monthly Full Payment Submission (FPS) as usual to HMRC. Also send an Employer Payment Summary (EPS). Enter the total CIS deductions for the year to date. HMRC will take your CIS deductions off what you owe in PAYE tax and National Insurance.

    How do I submit a nil CIS return?

    CIS – How to submit a nil return

    1. Electronically – by Electronic Data Exchange (EDI) or internet submissions in Sage.
    2. Phone – 0845 366 7899.
    3. Internet –
    4. Monthly return – complete the appropriate section on the monthly return and send by post.

    Who is exempt from CIS scheme?

    Exceptions for contractors paid for by a charity or trust. paid for by a governing body or head teacher of a maintained school on behalf of the local education authority. on the subcontractor’s own property and worth less than £1,000 excluding materials – you must call the CIS helpline to get an exemption.