Common Issues and Solutions Facing Construction Companies.

Compared to sole traders, limited companies working as subcontractors in the construction industry often experience severe problems when they try to claim a refund of CIS tax from HMRC. Here are the main issues:

1. Information regarding the amount of CIS Tax held by HMRC on behalf of a company is not made available online. Calling HMRC may take a lot of your valuable time and often it is very difficult to speak to anyone. 
2. There is confusion on how to claim a refund of CIS tax. HMRC says that a claim can be made by post. However, letters do not always reach the right department and even if they do, claims are not dealt with promptly. Furthermore construction companies must file an Employer Payment Summary via the PAYE scheme before a CIS claim can be agreed.
3. HMRC encourages limited companies working as subcontractors to claim CIS tax online. However, the process of claiming online is not straight forward and often setting up usernames, user Ids, passing identity checks and even using the correct HMRC site can be very difficult and frustrating.

We can assist you in resolving any issue you may have experienced in trying to receive a rebate of CIS tax for your limited company. We know what is required by HMRC, from registration to making an application, from following up to receiving a refund of CIS tax.

The CIS tax deductions count as advance payments towards your limited company’s future tax liabilities and can be used to offset Corporation Tax and VAT where appropriate. We can help you to register your business and ensure that CIS tax is properly accounted for on a monthly basis and refunded when due.

Why not give us a call and see how we can help?