Paul Retout (Tax Specialist and Tax Author)
The Tax Academy CIC
Unit 4, Ffordd Yr Onnen
Lon Parcwr Business Park
Ruthin
Denbighshire
LL15 1NJ
01824 704535 Email: paul@thetaxacademy.co.uk
Member of the HMRC Stakeholder Forum representing Prisoners
Member of the HMRC Voluntary Sector Tax Resolution Service (VSTRS)
Member of the ICAEW Tax Faculty
© The Tax Academy CIC
When released, if you plan to work in the Construction Industry you will need to register with the Construction Industry Scheme (CIS). The CIS provides a framework for the payments made to subcontractors from contractors. Essentially this is to make sure that subcontractors pay the correct amount of tax. In this article I will focus on registering under the CIS as an individual. The scheme covers all construction work carried out in the UK, including jobs such as:
You can be:
Contractors will deduct 30% if:
Tip: Contractor monthly statements
Always request from your contractor monthly statements showing payments made to you and the tax deductions. It is very important that should the contractor fail to make the corresponding payment of your tax to HMRC, the statements they give should be enough for HMRC to credit your tax record.
How to register under the Construction Industry Scheme as an individual
To register for the Construction Industry Scheme, you’ll need:
If you already have a UTR number, you will retain that number when you leave prison and work as a sub-contractor. You will need to contact HMRC to re-open your self-employed self-assessment tax record.
Whilst in prison you can telephone the CIS helpline and register with the CIS, so you are ready to work for a contractor immediately upon release: 0300 200 3210 (CIS Helpline and telephone registration for CIS) or 01824 704535 (The Tax Academy CIC).
Opening times HMRC: Monday to Friday: 8am-8pm. Saturday: 8am-4pm.
By post: Write to HM Revenue and Customs for general enquiries about the Construction Industry Scheme including registration: PT Operations North East England, HM Revenue and Customs BX9 1BX United Kingdom.
Registering for self-employment
Registration for self-employment is in addition to registration as a subcontractor, and this is where some taxpayers become confused. This means that there are two separate registrations. When you contact HMRC to register as self-employed you need to ensure that you are then also registered as a CIS subcontractor.
In most cases you can register as self-employed by calling the Newly Self-employed Helpline: 0300 200 3504. Whilst you are in prison you can also ring The Tax Academy CIC for further guidance.
Furthermore, you can write to HMRC. Their address is: HM Revenue & Customs, Self-Assessment, BX9 1AS.
When you register for self-employment you will be provided with a unique ten-digit number – your UTR number. This is required when you register for CIS.
Self-assessment tax return
At the end of the tax year you will need to complete a Self-assessment tax return. It is very important to maintain your payment summaries from your contractors, so you have evidence that you have had tax deducted by them. There is nothing worse than finding out at a later date that your contractor failed to pay over your tax to HMRC.
Likewise, it is extremely important to keep a detailed record of your expenses such as travel costs/mileage, subsistence, stationery, equipment purchased etc.
Coming Soon…