Here at TaxRefundsRUs, we’re CIS and PAYE refund specialists that provide a range of services to those who need help with their tax. We assist the self-employed, construction workers, small business owners, and any person who has ever incurred employment expenses, such as motor, uniform, or tool costs.

Although millions of people overpay on their taxes every year, few people know about taxes. We want to help our clients make sense of the oftentimes complicated world of tax, which is why we’ve put together this list of FAQs. The more you understand about tax, the easier it’ll be to identify issues. Read on to learn more. 

A tax refund, otherwise known as a tax rebate, is a payment to the taxpayer in the instance that they’ve overpaid on their tax. In the UK, income tax is deducted by the employer under the PAYE (Pay As You Earn) tax system via HMRC. Changing employment circumstances can result in an individual overpaying on their tax, resulting in them being due a refund from HMRC.

The Construction Industry Scheme (CIS) was introduced by HMRC in regard to contractors and subcontractors. This scheme allows contractors to take a small amount from their subcontractor’s wages and pay it to HMRC. This amount is then put towards the subcontractor’s national insurance and income tax. 

You’re required to register with the CIS if you pay subcontractors to do construction work or if you’ve spent upwards of £3 million on construction within a year since your initial payment was made. 

The CIS tax amount is dependent on the subcontractor’s registration status. Therefore, you’re required to deduct 20% from the pay of registered subcontractors, 30% from unregistered subcontractors, and 0% if the subcontractor has gross payment status. 

Payroll is the compensation a company is required to pay to its employees for a fixed period. Here at TaxRefundsRUs, we offer a payroll service, meaning you can rest assured that payroll legislation is being complied with correctly. As a result, you don’t have to source internal staff, provide thorough training, or pay for expensive software. 

For many, income tax is calculated for you and deducted from your salary before it reaches your bank account. Despite this, others may be required to file a tax return in which they must work out what they owe to HMRC using their capital gains and income. Every element of your income must be included in a self-assessment. 

You’re required to complete a self-assessment if you’re self-employed or attain additional income on top of your salary from your employer. This additional income includes income from savings, investments, dividends, tips and commission, and rent received from property you own. 

Bookkeeping is the recording of a company’s financial transactions. This is so that businesses are able to track all of their information on their book, which allows them to make financing, investing, and operating decisions. In the absence of bookkeeping, companies would be unaware of their financial position, as would HMRC. 

Contact TaxRefundsRUs

In order to learn more about the above services, please don’t hesitate to get in touch with the team here at TaxRefundsRUs.