
Self-employed? No deduction statement means no rebate! Or worse!
2 September 2020
By EEBS
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2 September 2020
By EEBS
If you are self-employed and paid through the CIS and your contractor deducts 20% of your wages they must, by law, give you a monthly CIS deduction statement that details how much you have been paid, and how much you have been deducted. No ifs, no buts, no maybes.
Why is this important to you? Well if you don’t have that statement and if the contractor hasn’t submitted his own reports (and simply pocketed your tax) you can’t prove that you have actually had your tax money deducted by the contractor. And to make matters worse, HMRC are likely to say that the “Net” amount that you have been paid is actually the gross amount of earnings – and because you can’t prove otherwise, they will tax you again on your net earnings!
Checks that you can undertake for your own peace of mind…
If you need advice or help with your tax return contact the EEBS team taxreturn@eebs.co.uk or call 01245 493823 or click Tax Return Service
Our team is happy to answer your CIS Payroll questions. Fill out the form and we’ll be in touch as soon as possible.
Need to talk to EEBS straight away about CIS Payroll?
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