Tax rebate info for Self-Employed Plasterers

If you are a self-employed Plasterer you will need to complete a tax return so that you can declare your earnings to HMRC and pay any appropriate tax. You should keep records of all your earnings. There are a number of people that end up paying more tax than necessary, either because they haven’t recorded evidence of their costs or they don’t realise what expenses and allowances they can claim. All self-employed people are allowed to claim tax allowable expenses so it is important you get into a routine of recording your income and expenses on a regular basis if possible. We have listed below the most common expenses which can save you tax. Follow these guides and we will help you secure a plasterer tax rebate.

Basically any expenses that you have incurred which are wholly and exclusively for your work are tax deductible.

CIS Tax Repayments

If you are a Sub-Contractor in the CIS you may be having 20% tax deducted by the Contractor from your gross payment. (30% if you don’t have a UTR) Don’t worry, after you Tax Return is completed and any tax due is calculated, the tax deductions will be credited and in most cases this will result in a refund of tax for you.

Expenses You Can Claim

• Materials used for your work
• Consumable tools
• Repairs & maintenance of equipment
• Insurance
• Protective clothing such as Overalls and Work Boots
• Laundry and Cleaning
• Telephone Landline – Business use
• Mobile Phone – Business Use
• Internet
• Advertising
• Postage & stationery
• Use of home as office
• Computer consumables
• Trade Magazines
• Bank charges on business account
• Accountancy fees
• Wages
• Fares & Travelling expenses
• Subsistence (if working away from home)
• Other sundry items
• Vehicle running costs (read notes below)
  • Fuel
  • Repairs & Maintenance
  • Road tax, insurance & MOT
  • Cleaning
  • Parking & Tolls

Please note: If you use your vehicle for your own personal use then you need to factor this in when any expenses are claimed. For example if you calculate that you use your vehicle 20% of the time for personal or family use, then you would need to reduce any relevant vehicle running expenses by 20%.

Simply fill out the form on our Claim Now page and we will take care of everything

PLASTERER TAX REBATE.

Construction industry scheme (CIS)

If you are self-employed in the building or construction trade, then you should pay tax under the Construction Industry Scheme (CIS). This page explains what the CIS is, how you register for the CIS and how your tax position works under the CIS. 

Basics

The Construction Industry Scheme (CIS) is a HMRC scheme which applies if you work for a contractor in the construction industry but not as an employee, so for example as a self-employed individual. The CIS rules mean that the contractor is usually obliged to withhold tax from their payments to you, at a rate of either 20% if you are ‘registered’ or 30% if you are not.

This is different from other self-employed individuals not within the construction industry, who normally receive their payments without any tax being deducted before the payment is made to them (this is called gross payment).

It is important to be clear that even though a contractor is withholding tax under the CIS on payments made to you and you might receive documents very similar to payslips (see under the heading Pay statements below) you are not being treated as an employee and so will not be entitled to any of the employment rights that usually go along with being an employee. There is more information on this under the heading Employment rights below.

The CIS covers more than what you may typically think of as building and civil engineering work, for example it includes work in demolition, site clearing, repairs and decorating, and installing power systems. The HMRC CIS manual details what work is included within the CIS.

Note that if you supply construction industry type services directly to a homeowner (so not to a contractor), then this would not fall under the CIS and the customer would pay you in full (gross), usually on receipt of your invoice.

The amount of tax that must be deducted by the contractor depends on whether you register as a subcontractor under the CIS.

Scope

You should only pay tax under the Construction Industry Scheme (CIS) if you are genuinely self-employed.

Not everyone who works in the construction industry is self-employed. Contractors have an obligation to decide if their workers are employed or self-employed.

Whilst most contractors would no doubt prefer to take on workers on a self-employed basis (as this means less cost/fewer responsibilities/paperwork etc for them), self-employment is a question of fact, not choice. You can read more about deciding employment status on our page Employed, self-employed or neither.

In situations where a person works exclusively for one contractor and does not have the risks of running a business, then they are likely to be an employee, rather than self-employed – even if the work arrangement is only for a very short time, or they have an existing unique taxpayer reference (UTR) or they provide their own small tools.

If you are regarded as an employee of the contractor, then income tax (and National Insurance contributions) will need to be withheld at source by the contractor under the pay as you earn (PAYE) system and you should receive payslips every payday. If you are an employee but are then passed to an umbrella company or another intermediary to be paid, then you should read our specialist guidance.

Registering with HMRC

Both contractors and subcontractors need to consider whether they should register with HMRC under the Construction Industry Scheme (CIS).

self employed tax rebate - HOW TO INCREASE BY THOUSANDS. (selfemployedtaxback.com)
CLAIM CIS TAX REFUND - How to get the maximum Tax Rebate (selfemployedtaxback.com)
self employed tax return - guidance - rebates of overpaid tax (selfemployedtaxback.com)
CIS tax rebate (selfemployedtaxback.com)
CIS tax return. Get it right and secure the maximum rebate. (selfemployedtaxback.com)
Claim Now | claim tax back. (selfemployedtaxback.com)

Subcontractors

As a self-employed worker, it is more likely that you will be engaged, or taken on, by a contractor to perform some construction work. This will mean you are a subcontractor. If you are a subcontractor, then you can choose whether or not to register under the CIS.

GOV.UK explains how you can register for the CIS as a subcontractor and what information you will need to be able to register. There are different methods depending on whether or not you have already registered as self-employed and if you are working for yourself as a sole trader or through a different trading entity, such as a partnership or a limited company.

Registration under the CIS is in addition to registration as self-employed for self assessment, not instead of registering as self-employed. This means for those new to both self-employment and the CIS, there are two separate registrations. However, both can be done at the same time.

Tax deductions at 20%

If you decide to register for the CIS, then the contractor must deduct and withhold tax at a rate of 20% of the amount of your invoices. If your invoice includes direct expenses such as for materials or tool hire, then tax should not be withheld from these amounts, so you should be paid 100% of these costs. If you are VAT registered see the heading on VAT below.

Note that ‘self billing invoices’ are quite common in the construction industry – rather than you issuing an invoice for your services, the contractor raises a self-billing document and forwards a copy to you with your payment (the idea is that this makes invoicing easier where the contractor, rather than the worker, determines the pricing). You should always check ‘self billing invoices’ to make sure that they agree to your records and what you expected to be paid.

The 20% deduction is paid by the contractor to HMRC who treat it as an advance payment towards your income tax and National Insurance contributions (NIC) for the particular tax year, as shown by your self assessment tax return. (We explain how the withheld tax payments are taken into account when working out your overall tax position under the heading Self assessment below).

You should receive 80% of the invoice paid directly to you, according to your agreed invoice terms, along with the full amounts for any additional costs, such as materials.

Tax deductions at 30%

If you decide not to register under the CIS then the contractor must deduct and withhold tax at a rate of 30% of the amount of your invoices for your work (but not any amounts you invoice for direct expenses such as materials or tool hire, etc.).