If you're a contractor under the Construction Industry Scheme (CIS) then you'll need to send HMRC a monthly return to inform them of the payments you've made to subcontractors. Full records need to be kept of all transactions. H M Revenue and Customs will want to check your records every once in a while, so you need to make sure they're accurate and kept safe. There are strict deadlines that need to be met, with penalties that start from £100 if you're even a single day late. These penalties increase as time passes. To avoid penalties, you need to be able to process the information they want reliably, and get it all submitted on time.
The easiest way of keeping up to date with your returns is to do it all electronically, either through HMRC's CIS Online service or using other software. You'll need to register to do this.
Every time you make your monthly returns, it's vital to check that HMRC has all the right details for your business and subcontractors. Inaccuracies cause a bigger problem if they are not rectified!. Once that's done, you can start details of all the payments you've made. Remember - if you're a CIS contractor, you need to go through all this even if you've made no payments to subcontractors at all. A “nil” submission will be required.
The right help can make all the difference in getting your CIS monthly returns calculated and sent in on time with no mistakes. Sarah J White Accountancy Services can guide you through all the potential pitfalls of dealing with HMRC. We can even be your agent with them, doing it all ourselves and taking that stress away completely!