CIS and self assessment

[NJW39]

Hi, once you registered as a subcontractor for CIS, do you have to register for self assessment too? I assume not, since the tax you owe is, as i understand it, deducted from the main contractor (ie the company who pays you).

 

[123Simples]

I believe you still need to register for self assessment

http://taxaid.org.uk/situations/cis...a-self-employed-subcontractor-in-construction

 

[VanillaOnlineAccountancy]

Yes as you are still self employed. If you are CIS only you should get a tax refund at the end of the year.

 

[VanillaOnlineAccountancy]

Just to clarify - register as self employed, not just for self assessment.

 

[David Griffiths]

It isn't possible to register as a subcontractor unless you have a tax reference number, known as UTR. The CIS line will ask for it when you register, and every contractor that you work for will ask for it so that the subcontract status can be verified.

Unless you already had a UTR from a previous period of self employment it would presumably have been issued when you registred as a subbie so the odds are that you are already registered. If you've just started, you won't hear anything from HMRC until next April when the tax returns for the current year will be sent out.

Just because the contractor deducts 20% does not mean that you won't have to pay more tax. Certainly most subbies get a repayment but if earnings are high there can be a tax bill because of the 9% class 4 national insurance that will be due on part of your earnings