Subcontractor annual return - help

System

Hi everybody,

I want to make an annual return (2006-07)for a subcontractor who brought his CIS 25 vouchers and Tax return form. How do I do this? What expenses can be claimed for him? Your help will be much appreciated.

I have only done returns for the contractors but not the subcontractors. I have also gone through the handouts I had from AAT CPD seminar, it did not say much about making annual returns for subcontractors. Your help will be much appreciated.


Sindy

System

Re:Subcontractor annual return - help

Not quite sure what you mean. As a sub-contractor he will have to submit a self-assessment Tax Return and the self-employment pages. The CIS deductions are shown in the self-employment pages and you send those in with the Tax Return. Is that what you are asking?

System

Re:Subcontractor annual return - help

Hi TC,

Yes, that was part of what I was asking. Also, I would like to know if he can also claim additional expenses (eg travelling fares, bank charges, interest etc) apart from the material cost that were already included in the CIS25.

Also, how do I actually fill the tax return with the CIS25 figures? I intend to include the gross pay in box 3.29 and the cost of materials on box box 3.30 of the self assessment page. Is this okay? How is the tax computation calculated? Do I work out the tax by applying the 10%, 22% and then 40% after the deduction of personal allowance? Should the 18% tax deducted in the CIS25 then be netted off? Please, advice. I really appreciate this.

System

Re:Subcontractor annual return - help

Private message posted.