If so, don't fall foul of the new rules. If you get behind with submissions or payments, you could lose your status and your cashflow will suffer as a result.
Under the new rules, 20% tax is deducted from payments by contractors, unless the sub contractor has gross status. Gross status requires a turnover to be met, together with general good conduct in the sub contractors affairs. If a sub contractor is not registered on the scheme, 30% tax is deducted.
To avoid any risk to your status, make sure you follow these simple rules:
- Pay your PAYE/CIS tax on time
- Pay Self assessment tax on time
- The occasional slight lateness does not usually affect status
- Submit P35/P14’s on time (make sure that your accountant will do this for you)
The above list is not exhaustive. In general, all payments of tax and returns must be submitted to HM Revenue & Customs by the due date. Failure to do this may jeopardise your status, and you may end up having tax deducted from your payments and having to wait for relief or repayment, with consequent impact on cashflow./p>
For CIS help and guidance with any of these issues you may call David Lee at our office.
