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If you work within the construction industry, payments from your customers are likely to be subject to CIS Tax. This tax is stopped at source by your customer.
If you are engaging subcontractors you will also need to review and ascertain whether their work falls within the Construction Industry and if so, you as the contractor are responsible for deducting CIS Tax from the payments you make to them.
The tax you deduct should be at the correct rate which is determined by a verification process run with HMRC. You are then responsible for paying this tax over to HMRC on the subcontractors behalf and monthly reports are required to be submitted online to detail this.
All this can have a substantial impact on your cash flow, our advice will take these impacts into consideration as this will be directly affected by the business structure you operate through.
The thought of handling accounts and tax returns can be a terrifying prospect if you’ve never done it before. So, if you’re thinking of setting up a business, talk to a member of our friendly and approachable team today. For comprehensive accountancy services in West Yorkshire and across the UK, contact Lima Accountancy. You can then leave the accounts to us and can focus on making your business a success!