VAT

Relieving you of the burden.

VAT can be the bane of everyone affected by it. The complex regime of regulations imposes a tremendous administrative burden on businesses. With the rate being so high, mistakes in calculating VAT can be costly - and the rigid system of penalties and interest charges for mistakes and the late submission of returns adds to that burden.

My cost-effective VAT compliance can relieve you of this burden. We will help to keep your VAT affairs in order, make sure you are collecting the right amounts for each transaction, and ensure that you make payments and file returns correctly and on time. In addition to providing a comprehensive bookkeeping and VAT accounting service, we can also advise on and help with:

• The pros and cons of voluntary registration

• The timing of compulsory registration

• Extracting maximum benefit from the rules on de-registration

• Partial exemption

• Timing and delaying VAT payments

CIS for contractors

 

We will complete the following for your contractor business:

  • Register your business as a contractor with HMRC

  • Verify new subcontractors and inform you of the correct tax deduction rate

  • Send you a reminder every month when it is time to file your CIS return

  • Check all CIS tax deductions including qualifying materials

  • Complete payment and deduction statements to provide to your subcontractors

  • Submit your monthly CIS return to HMRC

  • Register ourselves as your agent, which authorises us to deal with all your HMRC correspondence

  • Represent you in any HMRC investigation

  • Provide ongoing advice and support

  • File everything accurately and on time ensuring all penalties are avoided

CIS for subcontractors

 

We will complete the following for your subcontractor business:

  • Check your tax status to confirm whether you are a subcontractor or an employee

  • Register your business as a subcontractor with HMRC

  • Advise on gross payment status and register for gross payment status with HMRC (if preferred)

  • Reconcile all CIS deductions with your sales invoices

  • Complete your tax returns on time

  • Calculate tax refunds ensuring the largest repayment possible

  • Chase up tax repayments with HMRC

  • Register ourselves as your agent, which authorises us to deal with all your HMRC correspondence

  • Represent you in any HMRC investigation

  • Provide ongoing advice and support

  • File everything accurately and on time ensuring all penalties are avoided

CIS Payment and Deduction Statement

When a contractor makes a CIS deduction they must provide the subcontractor with a CIS payment and deduction statement. This is the written evidence which the subcontractor can use to prove any tax deductions with HMRC.

The CIS payment and deduction statement must be provided within 14 days of the end of the tax month in which the payment was made. As the tax months end 5th of each month the reporting deadline is therefore the 19th.

CIS payment and deduction statement layout

There is no default template for the CIS payment and deduction statement. Contractors can make up their own templates to send to subcontractors.

The CIS payment and deduction statement must however show the following information:

  • The contractors name

  • The contractors employer tax reference

  • The month to which the payment relates, for example the month end 5th Aug 2020

  • The subcontractors name

  • The subcontractors unique tax reference

  • The verification number provided by HMRC during the verification process – this is only compulsory for higher rate deductions at 30%

  • The gross amount

  • The CIS qualifying materials amount

  • The CIS tax amount

Where subcontractors have gross payment status there is no obligation for a contractor to provide them with a CIS payment and deduction statement. However HMRC do consider it good practice to issue one.

2 or more payments in the same month

A contractor may pay a subcontractor more than once in the same month. As an example some subcontractors may wish to be paid weekly.

When this happens, the contractor can include all of the payments on a single CIS payment and deduction statement. This would therefore cover all the payments in the tax month.

Alternatively the contractor can issue several CIS payment and deduction statements one for each payment.

The choice is up to the contractor and it will typically depend on the software they are using. But, whichever option is chosen it is important to remember that the subcontractor must receive the CIS payment and deduction statements by the 19th.

CIS payment and deduction statement example

As mentioned above there is no default template for CIS payment and deduction statements.

However HMRC have included in their guidance an example of what the statement could look like. We often find that most software use something similar to this example set by HMRC, so we would recommend contractors use it as a starting point.

Payment and deduction statement HMRC example

Bookkeeping

Keeping you fully informed on essentials
The last thing you want in your business is to have valuable time and resources tied up with routine bookkeeping and accounting.
That's something I can do for you.
I begin by discussing your specific requirements with you and then I set up appropriate accounting procedures and controls and ensure your accounts are kept fully up-to-date and in compliance with statutory regulations.
But I don't stop there. I can also provide you with regular management accounts to keep you informed on essential areas such as:

• Cash-flow
• Profitability
• Performance ratios
• Customer activity
• Credit control
• Budget comparisons

VAT Returns

 

 

Account for it Ltd

Natalie Yates MICB
Tel: 07738421164
Email: account_for_it@yahoo.co.uk​
Registered address: 22 Cranham Grove, Bransholme, Hull, East Yorkshire, HU7 4QB, UK

 

 

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Company number: 12626911 (Registered in England and Wales)

 

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