A CIS monthly return is an essential document for companies operating within the construction industry. This form must be filed every month and it allows contractors to report their income and expenses over a period of one calendar year. Contractors must complete a CIS monthly return even if they do not receive money from the state budget. They must keep records of all receipts and payments received during the previous month.
Contractors must file the CIS monthly return no later than 15 days following the end of each month. If you fail to submit the CIS monthly returns to the Ministry of Finance, you could face fines.
The Construction Industry Scheme (CIS) is a scheme introduced by the Australian Tax Office (ATO). This scheme requires contractors to submit CIS returns to the ATO each quarter. These returns are used to determine whether the contractor is eligible for GST credits.
A contractor who pays a subcontractor must make sure that the subcontractor registers and files CIS returns. If the subcontractor does not register and file CIS returns, it could mean that the contractor is liable for penalties.
If you pay invoices for work done by your subcontractors, you should ensure that they provide you with copies of the relevant CIS returns. You should keep records of all payments made during a tax period.
Subcontractor employee status
You must register for CIS before taking on your first subcontractor, even if it is just one person. This includes checking whether the individual is classed as an employee or self-employed. If the individual is classed correctly, you do not have to pay National Insurance contributions (NICs). However, you cannot make deductions in respect of NICs from payments to individuals who are not classified as employees.
HM Revenue & Customs (HMRC) has published guidance on how to determine whether someone is employed or self-employed. Self-employment tax is due if you earn over £16,874 per annum (2018/19), or £25,000 if you are a sole trader. For those earning less than this amount, you are deemed to be an employee. Your employer pays the NICs out of his salary, while you pay them yourself.
If you are unsure about what classification to use, contact HMRC. They have a helpline staffed 24 hours a day, seven days a week.
Information for CIS monthly returns
The Canadian government requires contractors to file a monthly return with the Canada Revenue Agency (CRA). This form includes information about the subcontractors used during the month, including the name of the person who paid them, the amount paid, and whether the payment included GST/HST.
A contractor should register before starting working if he wants to deduct Goods and Services Tax (GST) or Sales and Use Tax (CST) from his income. If you don’t know how much GST/CST you owe, you can use our online calculator.
Verification numbers are issued by CRA. They are unique and can’t be counterfeited. You can find verification numbers on your tax invoice.
No payments to subcontractors
– what does it mean?
The government has introduced a new system of tax compliance called “no payment to subcontractors”. This applies to self-assessment taxpayers and those paying corporation tax. If you are due to file a tax return, you do not need to submit a form 8D/8E (which is used to declare your income). You simply fill out the form 9A (for individuals) or 10A (for companies), which gives HMRC information about your income and expenses.
If you use subcontractors, however, you now need to complete a form 8D/E. These forms ask questions such as how much money you paid to each subcontractor. They also give you a deadline to provide the information. In addition, you need to tell HMRC whether you intend to continue using subcontractors. Failure to comply could lead to fines.
HMRC says that there is no penalty for failing to file a form 8D/7E, but it warns that people who fail to report changes in circumstances may face penalties.
CIS return deadlines
The deadline for filing Canadian income tax returns is fast approaching. If you haven’t already done it, now is the time to file your 2017/2018 federal income tax return. This includes Canadians living abroad, such as those working overseas.
If you’re living outside Canada, there are three ways you can file your taxes: online, via the mail, or by phone. You’ll find instructions for each method here.
penalties for missing the deadline for CIS payments
Late payments are one of the most common problems faced by contractors working in the construction industry. But it doesn’t have to be like this. A late payment penalty can be avoided if you make sure you know what you owe and stick to deadlines.
The Construction Industry Scheme (CIS), introduced in April 2016, provides funding to help small businesses finance major projects. To qualify for funding, contractors must register with HMRC and apply for a grant. They do this online via the CIS portal.
There are three types of grants available – £5,000, £10,000 and £15,000. Each type covers different project sizes. For example, the £5,000 grant covers up to £25,000. This includes costs such as design fees, legal advice, surveys, building control and VAT.
Once registered, contractors receive an email confirming receipt of their application. This contains information about how much funding they have been allocated. Once the contractor receives the allocation, they can start work.
But there’s a catch. The deadline for submitting invoices is 30 days after the date the contract starts. So, if you submit an invoice within the 30-day period, you won’t incur a penalty. However, if you fail to submit the invoice, you could end up paying a hefty late payment fee.
If you haven’t already submitted your invoice, now is the time to do so. You can find out more about the CIS scheme here.
Correction or modification of monthly CIS returns
If you realise that you have miscalculated your tax liability or want to change how much you are paying, there are three ways to go about it: You can use the online form on the HM Revenue & Customs website, send in a paper form, or use an approved commercial CIS software package. All three options allow you to correct errors, make changes to previous filings, and pay additional taxes owed.
The deadline for submitting amended returns is April 15th every year. This applies regardless of whether you filed your original return electronically or used a paper version. Normally, you must submit your amended return within 21 days of making the correction or change – unless you received a notice telling you otherwise.
Support from Accounts and Legal
The Construction Industry Scheme (Cis) is designed to encourage construction companies to pay corporation tax. This scheme allows employers to choose whether to deduct income tax from employee salaries. If you are self-employed, you should consider registering to use the CIS because it could help reduce your liability to pay tax.
There are two main ways to do this: online or via HM Revenue & Customs (HMRC). You will need to fill out a form called Form P11A and submit it to HMRC every month. If you want to find out how much tax you owe, you can check our calculator here.
If you are registered for the CIS, you will receive monthly payments from HMRC. These amounts depend on how much tax you pay during the previous calendar year.
You should make sure that you keep records of your earnings and expenses to support your claim. You will also need to provide evidence of your registration.
Frequently Asked Questions
What do I need in order for HMRC to confirm a subcontractor?
The government wants to make it easier for businesses to pay tax online. But how does it work? What are the rules around paying taxes via the internet? And what information do you need to provide when verifying a contractor with HM Revenue & Customs (HMRC)? We’ve worked out everything you need to know about registering for VAT and Pay As You Go (PAYG), plus what you’ll need to submit when checking a contractor’s status.
What happens if I don’t employ a subcontractor for a month?
If you haven’t used a subcontractor in a month, you won’t need to file a CIS return – even if it’s been longer than 12 weeks since you’ve paid them. But you do need to tell HMRC about it.
You’ll still need to give HMRC some information about why you didn’t use a contractor. They might want to see invoices or receipts showing what you spent money on.
HMRC say you could ask them to put your account into “inactive status”, where it’d remain for up to six months. This lets you avoid filing a CIS return without having to explain why.