What is CIS tax and does this apply to me?
CIS refers to the majority of workers in the construction business. If you’re a contractor, then you will have to deduct CIS tax from your subcontractors, and present CIS Returns to HMRC. If you’re a subcontractor, you will have to submit a tax return and claim your CIS refund.
If you’re a contractor inside the construction business, then you will need to present a CIS Return ahead the 19th of each month. Your CIS return allows HMRC to know how much CIS tax your company have deducted away from your sub-contractors and consequently how much tax you owe to them.
Regrettably, the fines for late returns are pretty expensive. If your return is one day late the fine is £100 and if your CIS return is longer than two months late an additional £200 is due for payment with more fines the longer it continues un-completed. This is why it is extremely vital that you stay on top of your CIS return yourself or for a specialist to file your CIS Returns on your behalf.