Contractors have to make monthly CIS returns to HM Revenue and Customs of the deductions that they have made from subcontractors and accounts for the tax deducted.
Nicolson Accountancy can advise on whether you are using genuine subcontractors or if they are in reality employees, and we can get you through the maze of legislation to help you understand the CIS rules as they apply to your business.
Nicolson Accountancy have invested in systems that allow us to verify subcontractors almost instantaneously online with the HM Revenue and Customs computers, identifying the CIS deduction rate to be applied by the contractor. Getting it right on your behalf, to avoid penalties later on.
Nicolson Accountancy prepare and send monthly CIS returns online for many contractors, ensuring instant approval and compliance, whilst producing the payslips in exactly the right format to allow the subcontractors to recover the tax deduction suffered. All this is available at a negligible cost per payment, and if you tie it in with your payroll processing, Nicolson Accountancy can cut the cost further.
Full reporting to you the contractor, to HM Revenue & Customs and to the subcontractor (including reprinting documents) are all done in seconds.
Nicolson Accountancy can even make payments to the subcontractors on your behalf, using the BACS system.
When things go wrong….
Many subcontractors fail to get the information that is required by law, meaning that completing their tax returns and meeting the subcontractors legal obligations are more difficult.
Nicolson Accountancy have huge experience in ensuring that subcontractors recover the tax, and helping contractors to fully meet their obligations.
- Our client, Company A, was not getting suitable payslips from Company B for the tax deducted. We obtained the missing information to allow Company A to get full relief for the tax suffered. Company B was providing information in a form that was utterly unacceptable to the HM Revenue & Customs and so there was a tax enquiry into Company B to make sure that they were meeting their obligations. We are now working with Company B, and as a result of our involvement the HM Revenue & Customs have backed off. The responsibility for completing CIS Returns for Company B has been passed to us, freeing up time for other productive work, and guaranteeing compliance, month after month. And saving them substantial sums in processing costs.