that horrible word TAX

[johnh1986]

Hi i recently went sole trader via HMRC and they have sent me a letter to say i am CIS (construction industry scheme) now im confused as i dont know what it means also on the bottom of the letter it states that it does not confirm im self employed unless the contract and terms and rules of the employer says i am also how much do you pay woth class 4 NI please cheers

 

[Megavolt]

Time to go see a accountant bud

 

[johnh1986]

Just started i know an accountant was just hoping someone could give me some advice even the HMRC web site didnt help

 

[FAA Greenie]

Sounds a bit odd John. You usually have to register to join CIS.

 

[johnh1986]

All i did was register self employment and just recived a letter today saying im CIS im confused

 

[amo]

It may be an error on there part. Worth giving them a ring I think. The website is useless, far to confusing.

 

[Octopus]

Ring them, they don't bite.

 

[Sharpend]

When you registered what work did you tell them you were doing? Subbing?

 

[johnh1986]

Fortuantly i have just checked my HMRC print off and i have applied for self assessment class 2 NIC they have sent me CIS class 4 stuff there fault big style im expecting a tax rebate for there stuff up haha i should be so lucky thanks everybody see they do make mistakes proof on paper glad i printed it off now

 

[VoltzElectrical]

I might be wrong but as far as I am aware, class 2 contributions are nothing to worry about, just £13 or so a month Direct Debit. Your Class 4 contributions are calculated on your taxable income after expenses, I think at around 8%.

IR35 Regulations will determine your 'employment status', but if you are working on a site, you shouldn't be affected as this is the normal setup.

So all that will happen is that you will work, invoice, get paid minus 20% then do a self assessment tax return to adjust the difference between what you have paid in tax and NI, and what you should have paid which usually works in your favour once you take into account the tax you have paid on untaxable income (allowance) and expenses.

This tax return is due AFTER the end of the tax year, so if you have just gone self-employed, you won't have to do anything until after 5th April 2014.

if you choose to pay an accountant to do your self-assessment, don't pay more than £250 all in.

 

[johnh1986]

No there was a box to say is your work in construction i said yes which i assumed was the right thing to say as it could be i suppose or is the type of work we do not class as the construction industry

 

[johnh1986]

Thanks voltz but now read a few posts it maybe me that made the mistake i will up date you all tomorrow with whos fault it is regardless im saying theres haha i think they take enuff of my money in the past through taxes

 

[Octopus]

Being self employed you HAVE to save money each month for your Tax and NI liability...... I buy premium bonds and do get prizes too!

 

[johnh1986]

Hahaha i all ready do set up a special account with a bank and everything so it goes in there as a tax fund which i dont really have great access to so dont really think about it just go and pay it and use a complete different bank for my money

 

[Octopus]

Hahaha i all ready do set up a special account with a bank and everything so it goes in there as a tax fund which i dont really have great access to so dont really think about it just go and pay it and use a complete different bank for my money

At leasr my way earns me the odd prize whilst how much interest does the bank pay??

 

[johnh1986]

0.0000000000000000001% a think not 100% though


Play with words there i think not sure

 

[johnh1986]

Well spoke to the tax ppl and they said not to worry so all sorted they put me cis incase i worked for a contractor

 

[VoltzElectrical]

Well spoke to the tax ppl and they said not to worry so all sorted they put me cis incase i worked for a contractor

nice one. I'm just doing my tax return now.

 

[johnh1986]

Are the hard i had a word with an accountant i no he said there easy do they come thru the post or do you do it online what things do you need to put on and wen do you have to do them

 

[tazz]

This is just your NI payment For being self employed, as all future taxes, income and vat are now payable online only, you need to setup account with HM Customs online, and pay NI Insurance monthly.

 

[johnh1986]

Cheers pal