Accounting for Service Companies
Regardless of what type of business you run, limited company, partnership or self-employment, if you work for a contractor, you should register for the Construction Industry Scheme (CIS).
Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs. These deductions count as advance payments towards your tax and National Insurance bill. If you do not register for the scheme, contractors must deduct 30% from your payments instead.
For the purpose of CIS, construction work includes:
• preparing the site, eg providing access works
• building work
• demolition and dismantling
• repairs and decorating
• installing systems for heating, lighting, power, water and ventilation
• cleaning the inside of buildings after construction work
To register as a contractor (subcontractor) you need a National Insurance Number and UTR. If you do not have UTR yet, you must first register as a Self Employed with the subcontractor option.
If the company’s turnover in the UK over the past 12 months has exceeded £ 85,000, you must register as a VAT payer. There is of course the possibility of voluntary registration even if the turnover of the company does not exceed the threshold.
To register as a VAT payer, you must complete the application and send it to HMRC. As a rule, the registration lasts up to two weeks, after that time you will receive the Registration Certificate with the VAT number.
My services are as follows:
• Free advice before you start the business,
• VAT registration and returns,
• Comprehensive Payroll,
• CIS registration and returns,
• Self-Assessment Tax Return,
• Annual returns,
• Contacting HMRC on behalf of the client.
If you would like to set up your own business or you run one already and provide services to others, please contact me for advice.
Customer satisfaction is very important to me!