Tax Requirements You Must Work On Now

A business thrives over many pillars. One such is taxation. Among the others, two of the most essential taxation components are Construction Industry Scheme and corporation tax return. Let’s get to explore them one by one.

Construction Industry Scheme

In the United Kingdom, CIS is a scheme administered by HM Revenue and Customs (HMRC) for mainstream and considered contractors in the construction industry. The key difference between the two is that mainstream contractors’ primary activity is construction.

Although construction is not designated contractors’ primary industry, we spend a lot of money on it every year.

HMRC establishes requirements for contractors to follow before making payments to subcontractors under Construction Industry Scheme. HMRC specifies that the contractor must be CIS-registered before hiring their first subcontractor. The registered contractor must deduct money from their subcontractor’s payments and pay it to HMRC.
Contractors can use CIS to deduct money from a subcontractor’s payment and send it to HMRC. These are payments made in advance for the subcontractor’s tax and National Insurance (NI).

How can I enroll in the Construction Industry Scheme (CIS)?

For CIS, all contractors must register with HMRC. Even if you want to avoid greater deductions as a subcontractor, you should register with HMRC.

What is a corporation tax return?

A corporation tax return is financial information that most businesses file with HMRC each year to report on their earnings, losses, loans, and any other circumstances that may be important to their tax liability. This information is used by businesses to compute the Corporation Tax that we owe.

A completed corporation tax return comprises the following items:
– a CT600 template
– the company’s books
– any more documentation

Suppose HMRC gives a ‘Notice to Deliver a Company Tax Return’ to a company. In that case, it must complete a Company Tax Return. This usually takes place shortly after the end of a company’s fiscal year. A Company Tax Return must be completed within 12 months of the end of the accounting period it covers.

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