Construction Industry Scheme Registration
The first thing you will need to do when you start or are due to start work under the CIS scheme is to register with HMRC as 'Self Employed'.
To this you will need to complete form CWF1 which can be found below and post it to HMRC or register online.
Once HMRC receive and process the form they will issue you with a Unique Taxpayer Reference number (UTR). This is a 10 digit number and you will need to provide this to the contractor (s) you are working for.
You will also need to pay Class 2 National Insurance, usually this is payable half yearly, for 2011/12 it is £2.50 per week.
Record Income and Expenses
You should ensure you keep a record of all income and expenses, it is best to maintain a spreadsheet to this. The contractor paying you has to give you a statement showing gross pay, deductions for any materials and CIS, you must keep receipts for any expenses you incur. It is also advisable that you keep a log of all business miles travelled, this should include date of travel, from and to and the number of miles travelled.
In doing the basics outlined above it will ensure a smooth relationship with HMRC without any nasty surprises.
Tax Advantage Services
Tax Advantage offer a fixed fee service this includes accounts, preparing and submitting your Tax Return to HMRC.
Everything is done by post, email and telephone.
Contact us now for a hassle free, quick service.
*This is for applications made prior to 31st October, after this date a £10 month incremental charge will be added.
Tax Advantage offers a friendly professional service where the client comes first.