If you are new to construction industry or you have been in the construction business, want to change from PAYE to CIS. This article will give you a clear understanding of the CIS. What is CIS? The CIS, which stands for Construction Industry Scheme, was enforced by HMRC in 1971. It was set up to protect construction workers from false employment and tax evasion. Under the scheme, contractors deduct money from their subcontractors pay to cover their tax and National Insurance contributions. How CIS works? It is necessary to sole traders who are in the construction business to register with CIS scheme. Otherwise, unregistered subcontractors tax will be deducted at 30% rate. Subcontractors who registered in scheme will be deducted at 20% rate. If you have a company and decide…
With Brexit approaching fast and a no deal Brexit, HMRC has been pre-emptive and made it compulsory for any business that moves goods into or out of the UK to hold a Economic Operators Registration and Identification number (EORI) , not having one could result in costs and delays to your goods. Such as HMRC not clearing your goods which will then result in you having to pay storage fees along with not being able to have your goods ready for sale. WHAT IS AN EORI NUMBER A EORI Number is a identification number that customs use to identify your company for all customs procedures. Customs authorities will be able to use the EORI Number when exchanging information between themselves and government departments and agencies. The purpose of an EORI…
ARE YOU GETTING SCAMMED? Are you Independent contract or self-employed who has filed for tax return in the past or planning to do so? Even if you are a tax filer, it’s often hard to keep track of self-employed book keeping regardless you paid taxes or not to HMRC. Usually we have accountants which are able to care of our messes. This state usually makes people vulnerable and makes you more approachable for scammers. These scammers usually contact individuals through an automated call or email or text message or via post about debt collection. They threaten people in thinking they owe a lot of tax and HMRC has informed the authorities but all of this can supposedly stop if you contact them on the number given and get instructions on…
Self Employment Annual Income £ The total annual income from your self-employment, before expenses. Annual Outgoings £ The total annual outgoings for your self-employment - enter the total of any allowable expenses in here. Tax code If you know it, you can enter your tax code in here. If you don't know your tax code, simply leave this blank. National Insurance Defer Class 2 If your profit is below the threshold (£6,365 for 2019/20) you can choose not to pay Class 2 NICs Age Under 7171 to 80Over 81 Which age group you are in affects your tax-free allowance, and whether or not you pay National Insurance. For the 2019/20 tax year, this is your age on 6th April 2019. MarriedBlindNo NI Married people over the age of 75 get…