Where do i put CIS tax paid on my on-line return?

[deadkennedy]

Hi experts,

i have been SEmployed since last summer and i am about to submit my first online tax return. I work as a consultant and have my fees paid to an umbrella company who take off my tax and forward the rest. I am filing my own return because i dont want to pay the *mates rate* of £150, and i would also like to learn how to do things like this myself.

So, question:- last year i made £X and paid £X in tax however, the online return only has a box for Profit. Do i use this box for gross fees? where do i put the tax i have already paid because it is obvious from the final calculation that this hasnt been taken into account?

many thanks in antisipation.

[Tej]

It might be prudent to pay the £150 and have it done professionaly. Save yourself money in the long run.. and grief besides....

Penny wise, pound foolish springs to mind :)

[deadkennedy]

i absolutely understand that but i already pay them £17.50 a week just to put the money through the account! a grand a year and they offer a discount rate of £150 to do my tax return! I took the first umberella company my old employers told me to:mad: Because i work on 3 month accounts i have been wary of changing to much at one time in case i need to sign on (fingers crossed i havent been out of work yet) but i know i need to get a proper accountant.

[David Griffiths]

There simply isn't enough information to answer your question. For a start, I'd guess that part of your income has been paid to you as salary, in which case you should have a P60 and put the relevant details on the Employment Pages of the return. Then I'd guess that the balance is paid to you as dividends, in which case you should have dividend warrants and should put the relevant figures in the dividends part of the return, which is on page 3 of the paper form.

You seem to be in the self employment pages. If what I've said above is correct, you aren't self employed and shouldn't be in there.

[deadkennedy]

i was employed under paye until june-july last year then the company i worked for made us all become *consultants* on pay and expenses, through an umberella company which caused a massive pay drop. Luckily i was able to use my qualifications in the field to go and consult for other companies. Because i am now earning a decent fee i was advised by the umberella to set myself up as CIS (i am an engineer). My fees are paid weekly to them, they take off 20% and forward on the difference (minus their 17.50) i also get a NI bill every 3 months or so. Have i been advised wrongly?

thanks for the replys so far btw:rolleyes:

[deadkennedy]

oh yeah...i used the p60 to fill in the "employed part" and a "statement upto 5/4/09" from the umbrella for the self employed part. The statement shows Gross amount paid(excl vat) £X Tax deducted £X (which is spot on 20%)

[David Griffiths]

If you are an engineer, I wouldn't at first sight have thought that you should be subject to a CIS deduction, but that depends on what it is that you actually do. CIS applies only to construction operations carried out by subcontractors, and that doesn't fit with my understanding of being an engineer.

That doesn't change the fact that you have had tax deducted, however. Have they given you monthly statements of the tax deducted? They should have done.

You have to enter the gross income in the turnover box, and then enter your expenses as appropriate. If your annual rate of gross income is less than £64k then you can use the shorter form of the pages - here. (http://www.hmrc.gov.uk/forms/sa103s.pdf)

The CIS tax goes in box 37 on page 2 - sorry, but I never use their online forms so don't know how this relates to that form, but it should give you a clue.

Edit to add that not only is it possible that you shouldn't be suffering CIS deductions, you might be able to do better working through your own limited company, or there are other attractive solutions which could well give you a better net income. As I said, this is without full facts, but it seems that they've advised based on them providing a solution for you, which may not be the best deal around.

[deadkennedy]

cheers, i am a highways construction engineer and supervise road construction gangs so it just sneaks under the wire apparently!

i only have petrol as an expense which is taxed before i recieve my money from the umberella.

i have the paper return so will find out where it applies on line.

i do really need to sort out an accountant.

thanks again for the help.

[deadkennedy]

Mr griffiths, i could kiss you...ive just gone from a £550 under payment to a £750 over payment in 1 click!

[Tej]

Mr griffiths, i could kiss you...ive just gone from a £550 under payment to a £750 over payment in 1 click!

There you go.. a good accountant saved you money.. and grief

You can't beat going to the right place at the right time :)

Glad that all is well.

[elainec100@cheapaccounting]

Mr griffiths, i could kiss you

Well that would be a first and I can't wait to see if he turns into a prince :p

[David Griffiths]

Mr griffiths, i could kiss you...ive just gone from a £550 under payment to a £750 over payment in 1 click!

"thank you" will do nicely! :eek:

[David Griffiths]

Well that would be a first and I can't wait to see if he turns into a prince :p

Are you taking "handsome" for granted then?

Or have you seen me! :p

[elainec100@cheapaccounting]

Are you taking "handsome" for granted then?



David - don't get too ambitious - let's get you to a prince first.

One step up from you being a frog me thinks.


:D:D:p