Accounting for CIS Subcontractors

Accounting for CIS Subcontractors

If you're a CIS subcontractor then you're used to having tax deducted from you all year via your pay. But that tax is usually too high - it has not accounted for all the allowable expenses that you can claim as a CIS subcontractor. In short, it means that throughout the year you are usually paying too much tax.

What this means in real terms is that the majority of CIS subcontractors are owed a tax rebate at the end of the tax year once they have submitted their tax returns and claimed for all of their allowable expenses,

The tricky bit is knowing what you can and can't claim for - which is where we step in.

The accountants at Mazuma are experts in making sure that CIS subcontractors are paying the right amount of tax, getting their returns filed quickly after the end of the tax year, and getting any tax rebate owed to them sorted out as soon as possible.

What is CIS accounting?

The Construction Industry Scheme (CIS), is a scheme where contractors deduct money from subcontractors and pass money to the HMRC as a way of ensuring advance payments for tax and NI - a bit like collecting VAT and then paying it to the HMRC.

Subcontractors don't have to register, but if they don't, they end up having deductions taken at a higher rate than if they were registered.

For full details, visit the HMRC website.

Why bother outsourcing your accounts as a subcontractor?

Sure, you can file your tax return yourself. But is that really how you want to spend your time? That aside, are you absolutely sure that you know what you can claim for? We offer a low cost monthly subscription that not only makes sure that we're keeping on top of your accounts to get them done as soon as possible at the end of the tax year, but you'll have your own accountant to talk to throughout the year for any advice you may need. 

Got a scary letter from HMRC? We'll handle it for you.

Want to know when it's the best time to buy new equipment? Ask your dedicated accountant.

Most of our CIS subcontractor clients pay our base price of £28 + VAT per month and nothing more. 

Making Tax Digital for CIS Subcontractors

Have you heard about Making Tax Digital (MTD)? At the moment it only applies to VAT registered businesses. But very soon it will apply to any business that has income of over £10,000 a year. The change means that you will have to file a return with HMRC four times a year instead of just once. 

You will also have to keep all of your records digitally as part of the change.

Mazuma are fully Making Tax Digital compliant. You can still just send us your paperwork in one of our trademark Freepost envelopes and we'll handle all of the digitisation for you. Or you can use our app to upload your documents and know that we're dealing with all the relevant submissions to HMRC behind the scenes. 

How you'll benefit from our services

Unlike other accountants, we don't ask you to do any of the work yourself. You don't need to have an accounting software subscription to Quickbooks or Xero,  we don't even ask you to keep a spreadsheet. All you have to do is give us your paperwork and we'll take care of everything else.

We'll make sure that your tax is correct and that you're claiming for all of your relevant allowable expenses. We'll ensure that your tax is filed quickly and any rebate you may be owed is in your bank account asap!


You can take a look at our FAQs or just give us a call. If you'd like to go ahead then you can get a quote and enjoy a free trial by filling out your details here.

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