If you are a construction worker, then you’ll be happy to know that unlike other workers who dread the tax deadline, people who are working in the construction industry actually look forward to it due to the tax deductions they can get.
If you’re just starting in the industry, or you believe that you have not fully taken advantage of this benefit, make sure to read the list below for thing should about tax rebates.
1. All contractors and subcontractors can enjoy tax rebates through the Construction Industry Scheme – the Construction Industry Scheme or CIS was created by Hm revenue and Customs. The reason for this scheme is so that there will be significantly fewer people who will commit tax evasion in the construction industry. This is available to all who are working as contractors and subcontractors, whether it is a sole proprietor, partnership or companies.
2. There are specific jobs that are not covered under the CIS – now, even though this scheme is for all contractors and subcontractors, you must understand that it does not cover some specific jobs. While jobs like general building, groundwork, alterations and repairs and demolition are all covered, others, like scaffolding hire, carpet fitting, materials delivery and architecture and surveying are not included in the CIS.
3. You need to make sure you keep all important records – in order to make sure that everything will go smoothly once you file your tax return, you must make sure that you all have all the records that are needed for a tax refund. These include all the sites where you worked including the dates you worked there, do not exclude anything. Another thing that you must prepare are the CIS statements. CIS stat statements are the monthly statements between a contractor and subcontractor. You may recognize them as wage slips or vouchers. Make sure that all the details of the contractor (name, address and tax reference) are included, same as the subcontractor and of course the month that the CIS statement is for.
4. There are many things you can claim for a possible tax rebate – you may ask, what are the things that you can include for a tax refund? You will be glad to know that there are many including tools of the trade, from compressors, supplies and materials and even small tools. You can also add work gear and even expenses that you incur when further developing your skills for the job that is entailed. Another thing you can deduct is business travel and even driving expenses.
5. To get the full benefits, you can professionals check your tax return and see if you can still get more entitlements – it is quite easy to file your CIS Tax Return yourself, but if you want to get the full benefits, you may want an expert to do it for you. They can check if there are deductibles that you missed so that you can further enjoy your tax rebates.