Form C 149i Subcontractor
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Quick guide on how to complete form c 149i subcontractor
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People also ask
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Is cis based on invoice or payment date?
CIS is not deducted from VAT or from the cost paid for materials, hire of equipment, pre-fabricating or manufacturing. The CIS is deducted up to and including invoices paid by the 5th of the month and is then paid by the contractor to HMRC by the 19th of the month.
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Do I need to register for CIS if I am a subcontractor?
It applies to both contractors and subcontractors working within the construction industry, and was set up by HMRC to collect income tax from builders throughout the year. That's why registering for the CIS is a legal must for contractors and is recommended for subcontractors too.
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Is paying a subcontractor an expense?
Your business likely hires other service professionals like lawyers and accountants on a contract basis. Independent contractors fall under this same category. And, as such, the work they perform should be treated as a tax-deductible expense.
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How do I claim back CIS as a subcontractor?
If you pay CIS deductions, you must claim these back through your company's monthly payroll scheme. Do not try to claim back through your Corporation Tax return - you may get a penalty if you do. Send your monthly Full Payment Submission (FPS) as usual to HMRC. Also send an Employer Payment Summary (EPS).
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What is the form for a CIS subcontractor?
Use postal form CIS301 to register as a Construction Industry Scheme (CIS) subcontractor with payment under deduction.
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What is the difference between a contractor and a subcontractor?
A contractor is a person or company that obtains contracts directly from customers and carries them out, while a subcontractor forms agreements with contractors to perform specific tasks within a larger project.
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What is a domestic subcontractor?
A domestic subcontractor is one that is selected, procured and awarded packages of work by the main contractor, solely at the discretion of the contractor. These subcontractors are not specified in the contract and they are not bound by any pre-agreed terms and conditions, unlike nominated and named subcontractors.
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Do subcontractors have to register for VAT?
However, VAT for subcontractors is 'reverse charge' – this essentially means that they don't have to pay over VAT, but they do still need to be registered &they can therefore claim VAT on their purchases.
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