Self-employed contractors and subcontractors working in the UK construction industry need to submit a self-assessment tax return at the end of the tax year. It needs to include all the income and expenditure you’ve generated in this tax year, alongside deductible tax due to your contractor status.
However, you may be entitled to a CIS (Construction Industry Scheme) Tax Refund. If you’re a contractor for the construction industry, you should be registered with HMRC as soon as you can, so you can reap the benefits. Subcontractors also need to be registered in order to receive this. The standard CIS tax deduction rate is around 20%, so it’s definitely worth your time.
However, it can be difficult to keep up with all the paperwork this entails: stuff like monthly returns to the HMRC, making sure all of your subcontractors are registered and compliant, and handling the dreaded Self Assessment tax return. When you work with NWD, you can ensure that all the busywork involved with CIS entitlement is handled quickly and made easy.