Managing taxes and ensuring compliance with HMRC regulations is essential for every limited company operating in the UK. One critical aspect of this process is declaring Construction Industry Scheme (CIS) suffered. This guide will help you understand better CIS suffered and claiming back any overpaid taxes.

 

What does CIS suffered mean?

While it may seem technical, in practical and financial terms, it signifies that CIS deductions experienced by a sole trader or partnership can solely be deducted from the profits of that unincorporated business. Typically, these deductions are calculated at the conclusion of the trading year.

 

Understanding CIS

The Construction Industry Scheme is a tax deduction scheme for construction workers and businesses. Under CIS, contractors deduct money from a subcontractor’s payments and pass it to HMRC as advance payments towards the subcontractor’s tax and National Insurance contributions.

 

Submitting monthly CIS returns

Limited companies operating in the construction industry are required to submit monthly CIS returns to HMRC. These returns detail the payments made to subcontractors and the deductions made for CIS.

 

Receiving the statement of account

After submitting the monthly CIS return, HMRC sends the limited company a statement of account. This statement outlines the deductions made for CIS and any overpaid CIS tax.

 

Claiming a refund

If the limited company has overpaid CIS tax, they are entitled to claim a refund from HMRC. To do this, the company must complete a form provided by HMRC and submit it along with the necessary documentation.

At Lexarox, we understand the complexities of tax compliance for limited companies. If you need assistance with reclaiming overpaid taxes, now is the perfect time. Starting with 6th April WE CAN SUBMIT YOUR SELF ASSESSMENT & TAX RETURN for 2023/24 FAST AND EASY. Our team will help you navigate the entire process. Simply send us your inquiry at info@lexaroxaccounts.co.uk, and we’ll provide personalized assistance tailored to your needs.

 

Conclusion

Declaring CIS suffered and claiming overpaid CIS tax is a crucial aspect of tax compliance for limited companies in the UK construction industry. By understanding the process and seeking professional assistance when needed, companies can ensure compliance with HMRC regulations while maximizing their tax refunds.

 

👉 For full professional accounting services, please visit our page SERVICES. If you need assistance, consultancy services or simply want to contact us for any solutions you are looking for your business, you can use the following details:

Mobile & WhatsApp: 0747 235 6282 | Email: info@lexaroxaccounts.co.uk

 

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Find out more important details about Construction Industry Scheme:

>> Responsibilities of a contractor in CIS

>> Construction Industry Scheme

 

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