Services we provide for contractors:
Register you with HMRC as a contractor
Verify your subcontractors with HMRC
Ensure you pay your subcontractors correctly within the scheme
Supply deduction statements to the subcontractors
Keep your records in good order and supply HMRC with monthly returns
Make sure you do not incur penalties by failing to submit your monthly returns to HMRC. PMA Accountants work with numerous contractors and are equipped to deal with your needs efficiently. By making sure we are always up to date with any changes to the CIS regulations we can notify our clients quickly of any changes that may affect them.
Contractors: As a contractor, you are required to meet specific obligations under the scheme, including registering with HM Revenue and Customs (HMRC), checking whether your subcontractors are registered with HMRC, paying subcontractors, deducting tax and submitting monthly statements confirming these payments.
Subcontractors: If you are a subcontractor, your main obligation is to register with HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business name, business partners and other relevant information.
Services we provide for subcontractors:
Determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly
Verify you with HMRC on behalf of your contractor
Manage and organise your business records
Prepare your end of year self assessment tax return and calculate your tax liability/ refund where applicable
Any contractor that you work for must determine whether or not you are to be treated as employed or self-employed for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
If you are self-employed, HMRC will register you as a subcontractor under the CIS scheme and they will set you up to receive payments ‘under deduction’. This means contractors must make a deduction of tax at 20 per cent (30 per cent for unverified subcontractors) from the labour element of your invoices and pay it over to HMRC.