All contractors must register with HMRC for the Construction Industry Scheme.
Subcoactors who do not wish to have deductions made from their payments at the higher rate of deduction should also register with HMRC. HMRC will provide registration details that contractors and subcontractors will need to use when they deal with payments.
Before a contractor can make a payment to a subcontractor for construction work, they may need to verify with HMRC that the subcontractor is registered. you need to check whether the subcontractor is registered with HMRC and then tell the contractor the rate of deduction they must apply to the payment, or whether the payment can be made without any deductions.
Making deductions from payments Under the scheme,
All payments made from contractors to subcontractors, must take account of the subcontractors’ tax status.
This may require the contractor to make a deduction, which they then pay to HMRC from that part of the payment that does not represent the cost of materials incurred by the subcontractor.
If no deduction is required, the contractor can make the payment to the subcontractor in full.
If a deduction is required, the contractor must:
1.calculate the deduction
- make the deduction
- record details of the payment, materials and deduction
- make the net payment to the subcontractor
- complete and give the appropriate statement of deduction to the subcontractor
Limited Company Registration and all the initial Setup.
- You need a proactive adviser who will help you choose the best legal structure to trade tax efficiently.
- Also the adviser will help you with opening a business Bank Account, Payroll, Staff & Sub Contractor Contracts, Bookkeeping, VAT and End of year Accounts.
- Choosing the right adviser from the start helps you to start your business with a renewed confidence and will save you save a lot of tax! and hopefully grow and expand your business.
Please visit our website for more details: http://www.kgaccountants.co.uk
- If you need to speak to a Proactive Accountant about your new venture, please contact us on 0208 679 4690 please Visit our Website.
Categories: Construction Industry Scheme, Electrician, Limited Companies, Plasterer, Self Employed, Taxes, Tiler, Uncategorized
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