If you work as a contractor or are self-employed in construction, you are undoubtedly familiar with the Construction Industry Scheme (CIS). You likely also know that you are entitled to a CIS tax refund yearly. Outlined below are helpful tips that will allow you to maximise your tax refund and get back more of the money owed to you.
First, make sure that you keep track of your CIS vouchers/pay studs. These vouchers will be given to you by your employer and detail all the CIS deductions taken on your behalf. Each contractor or employer that you work for should provide you with such a voucher. Make sure to review the vouchers when you receive them to ensure that taxes are being sent to the HMRC on yourself. Then keep the voucher in a safe place so they can be used when determining your CIS tax refund.
Second, keep a detailed record of all your expenses. The best practice would be to keep a log with receipts for everything you buy to help you do your job. Not all expenses will increase your refund, but a CIS tax refund expert, such as Fish 4 Money, will be able to help you determine which ones you can use. Examples of allowable expenses include necessary tools that you purchase to do your work, meals bought during work hours, required repairs made to any necessary tools, uniforms that you are required to have, the cost of memberships that are needed for your work, equipment used in a home office, including computers, copiers and much more.
Third, maintain a ledger of all your mileage as well as motor vehicle and travel expenses. Claiming expenses relating to the vehicle you drive can be expenses, but at Fish 4 Money, we can help you maximise your CIS rax refund but claiming every allowable deduction. Always obtain and keep receipts for all tolls paid, gas, and upkeep of your vehicle. Also, keep records of any modifications done to your vehicle directly related to your work, such as having a trailer hitch added so that you can tow equipment. It is also important to keep a log of miles that you travel. Each time you leave for work, write down the mileage before you leave and when you arrive at your work destination. You may also claim hotel and lodging expenses to increase your CIS tax refund, so keep all hotel receipts as well.
Detailed expense records and receipts will allow you to obtain the highest CIS tax refund.