ARE YOU A SUB-CONTRACTOR? MAKE SURE YOUR RECORDS ARE READY FOR APRIL!
Who is a sub-contractor?
A sub-contractor is a self-employed person who has 20% deducted (if verified) from their payments by a contractor. The contractor submits this information to HM Revenue and Customs (HMRC) on the sub-contactor’s behalf via a CIS return. These deductions count as advance payments towards the sub-contractor’s tax and National Insurance bill.
If I’m a sub-contractor will I get a refund from HMRC?
If you’re a sub-contractor whose profits are below the personal allowance of £11,500 (for the 2017/18 tax year) then you are likely to be due a refund from HMRC. You may still have to pay a proportion of Class 2 and Class 4 National Insurance depending on your profit.
What do I need to do?
You will need to keep ALL of your payment and deduction statements and all business receipts e.g. materials, tools, motor costs. You can then send your records to your accountant any time after 6th April 2018.
At Your Tax Shop we are experienced in processing sub-contractor’s tax returns and can help you every step of the way!
If you’re a sub-contractor and need to file a tax return get in touch today by contacting one of our offices in Tameside:
Ashton office – 0161 339 5689
Mossley office – 01457 837744