Collaborate on Cis Invoice Example for Mortgage with Ease Using airSlate SignNow

Cis invoice example for Mortgage

are you working in construction and don't understand the CIS scheme let me explain more if you haven't yet click the bell and subscribe to be notified every time we produce our best pieces of content are you in the construction industry you've already got problems custom materials have gone through the roof cost of Labor has also gone up drastically and to understand tax as well as this follow my video and then explain exactly what CIS tax is why it's important to you and more so what you need to do who needs to register now if you're an entity and or a company you need to register straight away so when you're starting or if you haven't done yet please make sure you do register for CIS immediately now if you're an actual contractor and you're a sole Trader there's no need initially to register for CIS but please bear in mind if anyone that's unregistered as a sub-contractor will have initially a higher tax deduction now the C CIS scheme covers most construction work and a lot but be mindful that it doesn't cover all all services and so make sure whether you're a new startup business or an established one have a check to see what services you're providing and make sure that they are in line with what you're declaring under the CIS scheme so the CI scheme why is it in place okay let's deal with the elephant in the room there was a lot of cash going on in the construction industry scheme and there was lots of tax that was being unpaid so what the government decided to do when they set up this scheme was basically tax at source so contractors will be paying their tax up front but then they won't have to find at the year end and companies are dealing with their tax as the year goes on so the reason why that this scheme is in place is because the amount of cash that was going on within the industry the first thing I would do to to have a look at is who are your customers so and put these into two pots why Bumble be the End customer who you're doing the project for who is paying your money but they're not a construction company they have no need to deduct CRS from you whatsoever now if you are subcontracting to another company they will need to deduct CIS tax from your labor element so bear this in mind as you will get less money up front as they will pay this proportion of CIS tax to hmrc now if you're a construction industry company too and you've got contractors you'll need to deduct CIS from their payments for their labor element too so bear this in mind this can be quite a bit admin exercise for construction companies as there's a lot of paperwork flying around and you need to get this right now you are entitled to make sure that you keep a monthly copy of these and also give your contractors an annual summary which will help them when they are preparing their personal tax returns what are the rates of sea ice tax the main rate of sea ice tax is 20 percent now 20 is deducted from all of the labor element and that can be from your customers when you're providing the goods and services to them it could also be from the contractors that you're paying now bear in mind when you take on a subcontractor for your construction business you need to verify them before they start and you start paying them because if they're not verified and they're not registered on the system you should be deducting 30 from their labor element that they're providing to you bear this in mind because sometimes people get into a trap and fall into this and it can be painful I know what you're thinking what's the benefits of CIS it sounds like I'm paying my tax up front yes you are but one thing that it could be really beneficial for if you're a subcontractor is you haven't got to save up your tax throughout the year it's paid up front so if you did yourself assessment and it was a 5 or 10 grand log whatever it is you're getting your tax up front now a lot of subcontractors end up with a refund which I always look forward to so we have various people that come to us in April or May go ahead where's my refund and that's good but anyone that's paying their tax in time up front I think is a good way to be so if you struggle budgeting putting money aside this can be really beneficial for you and the same can happen for your construction industry company too if you're getting tax deducted for your income you can offset this against your corporation tax you can offset this also against any tax that you're deducting from your subcontractors so you're not paying it twice you're also building up a buffer if you need to and we all know that it can be tired and sometimes there are companies out there that don't prepare for tax and if you're getting tax deducted more than you're paying this helps to save any company that's not getting into trouble by paying their tax early and on time has only got to be a good thing please bear this in mind this is a really big admin exercise that takes technical Nelson ability do not leave all this to the year end when everyone's forgotten things the best construction companies keep on top of their books and records at least monthly so they are on top of it they know exactly where their tax position is all of their paperwork is being filed with hmrc at specific times and you are on track so if you don't feel like that you're in control of this or the people around you haven't then please reach out to someone because there's great products out there in a minute like with bookkeeping you've got a package called xero that can really help you maintain and keep hold of your Construction Company without getting into problems I hope this video has helped if there's any questions that I could help with whatsoever please drop me a link on my calendar link below and book in a discovery call with me I promise I'll do my best to answer the questions get to understand you and I promise there'll be no pushy sales pitch foreign