How do CIS tax deductions work?
The contractor you’re working under will deduct money from your payments and pass it to HMRC. These deductions count as advance payments towards the tax and National Insurance that you pay. As part of this process, you often end up paying more tax than you need to. That’s why it’s important to file a tax return – so you can understand what refunds may be available to you.
What work is covered by CIS?
For the purpose of CIS, construction work includes:
- Preparing the site – for example, laying foundations and providing access works
- Demolition and dismantling
- Building work
- Alterations, repairs and decorating
- Installing systems for heating, lighting, power, water and ventilation
- Cleaning the inside of buildings after construction work
What work isn’t covered by CIS?
You don’t have to register if you only do certain jobs, including:
- Architecture and surveying
- Scaffolding hire (with no labour)
- Carpet fitting
- Making materials used in construction including plant and machinery
- Delivering materials
- Carrying out work on construction sites that’s clearly not construction – for example, running a canteen or site facilities
What if I’ve been using a different expense and income tracker?
No worries. If you wanted to import your data without using Finmo’s tracker, we can do that for you. We do this free of charge for those with our Complete package. For those with our Lite package, it’s just an extra one-off fee of £25 + VAT.
What if I don’t want to use Finmo’s app and just want to send in my expense list?
No problem, we can sort this for you. It’ll be free of charge for those with our Complete package, and for those with our Lite package, we’ll charge a one-off fee of £25 + VAT.