Don’t forget to file your tax return for your last year in the UK.
We know that paperwork is the last thing you want to spend time doing when you’re preparing to go home, or move to pastures new but it is an unavoidable necessity. If you are a seasoned CIS tax return filer or if you are doing it for the first tax year missing the deadline is a costly and avoidable experience.
Why do I have to submit a tax return?
The Construction Industry Scheme (CIS) is HMRC’s tax administration system for subcontractors in the construction industry. If you are in the CIS, you have to submit a tax return every year. This is where you declare your income and the expenses you are entitled to. HMRC makes the necessary calculations and issues your tax refund accordingly.
It’s important to let the tax office know that you have ceased self employment in the UK. You can do this by entering the date you ceased self employment on your tax return. If you don’t HMRC will not know and will continue to send you tax returns in the future.
What happens if I don’t get my tax return done before I leave?
You can still sort it out from where you move to. But it’s just easier and there’s less likelihood of paperwork going walkabout if you do it before you go. Everyone knows about HMRC’s hefty penalties for missing deadlines, or filing inaccurate returns. But there’s a much more positive reason to make sure you file your self assessment tax return before you depart – your leaving the UK tax rebate.
Depending on when you leave the UK you might not be able to submit tax return straight away because you have to wait until after the tax year ends (on the 5th April) before submission is allowed by the tax office. This means you may need to wait for a number of months before being able to do anything.
Do I need to complete a P85?
HMRC would not normally expect you to complete a P85 leaving the UK form if you have to complete a self assessment tax return.
How much is a CIS rebate worth?
It’s easy to overlook how much this is work as a CIS subcontractor. For example, one of our clients (let’s call him Dave for the sake of confidentiality) got in touch a couple of months before he was due to return back home to Ireland.
Dave phoned to discuss another financial matter, but during the conversation our expert mentioned his CIS tax return. Dave knew he had to declare all his income but was unaware that he had to file a tax return . He decided to get us to look into that for him, as he was tight for time planning the move. We managed to secure Dave a tax rebate for over £2,000 for all his eligible work expenses. Dave was delighted at this unexpected windfall at such an expensive time and received his payment via a BACS transfer to his bank account in Ireland free of charge.
Give our free CIS Tax Rebate Calculator a go to see how much yours could be worth.
What have you spent money on this year?
- Safety boots
- Tools and equipment
- Uniform
- Protective clothing, like gloves, ear guards or safety glasses
- Travel, by public transport or your own vehicle
- Trade Union membership or the subscription fee for your industry body
- Professional fees, like accountant and insurance
- Working from home
- Using your own phone
- Accommodation, food and beverages, particularly if you are required to work away from home
Keep your receipts, maintain a travel log and declare everything on your self assessment tax return.
