Erica Freeman FCCA, MBA’s Post

For those working in the construction industry, the compliance requirements of the Construction Industry Scheme (CIS) must be followed. Under the scheme contractors deduct money from the subcontractor and pay this to HMRC. These deductions count as payment in advance toward their tax and National Insurance contribution. Contractors must register for CIS, subcontractors who do not register with the scheme will have their deductions taken at the higher rate of 30%. You can get more information about the scheme here https://lnkd.in/eSDq5zC7 We are always happy to hear from business owners, directors and entrepreneurs who need help with accounting, tax or business advisory service. Let us know if you need help with the CIS scheme. Follow us for more tips, tax and business-related matters. #smallbusinessbritain #accountant #selfassessmenttaxreturn

Here's some interesting changes to look out for in the future of financial reporting.

Heads Up.. In an attempt to simplify accounting and disclosure for many private companies the Private Company Council (PCC) this week voted to approve a proposal for two separate private company accounting alternatives for credit losses (AR Allowances) and construction overbillings (Retainage). The alternatives would ease requirements and presentation that has raised many questions and concerns amongst private companies. Be on the look out for more to come as this progresses. #accountingandaccountants #financialreporting #privatecompanies #construction #cpa #fasb

🌟 Attention Business Owners! 🌟 If you make payments to contractors—whether they’re subcontractors, consultants, or independent contractors operating as sole traders, companies, partnerships, or trusts—don’t forget your obligation to lodge a Taxable Payments Annual Report (TPAR)! 📅 TPAR Deadline: 28 August 📅 The deadline is fast approaching, so make sure you’re on top of your reporting requirements. Need help with your TPAR or have any questions? We're here to assist! 🔗 Contact Canberra Accountants today for expert guidance and ensure your compliance is seamless. #TaxTime #TPAR #CanberraAccountants #Compliance #Contractors #BusinessEssentials

Business Success Tips. If you are under the Construction Industry Scheme (CIS), the domestic reverse charge for VAT may impact you. Client Relationship Manager Lucy Mayes from Carthy Accountants in Stafford explains where the reverse charge may be applicable. Get the business you want: Visit the Carthy Accountants website. #Accountants #BusinessSuccess #ConstructionIndustryScheme #GetTheBusinessYouWant #MoreThanAccountants #CIS

Are you aware of the new changes for the Construction Industry Scheme (CIS)? As of 6th April there were some changes that you need to be aware of. Gross Payment Status is critical for companies working in construction, with the loss of this having potentially drastic impact on cash flows if removed. You need to be aware of this, not only for your own status but also for that of your subcontractors. So, what’s changed? VAT has now been brought into the compliance test for obtaining and retaining Gross Payment Status, this means when applying HMRC will look at whether you have filed all relevant returns on time, and made tax payments by their due date. Gross Payment Status will also be reviewed at 6 months post issuing to ensure you have remained compliant with tax filings and payments. Any non compliance could result in the removal of Gross Payment Status. HMRC should notify you if your subcontractor status has changed, so you can ensure relevant deductions are made. You will need to ensure your subcontractor is detailing out their split of labour and materials accurately, which they may not be used to doing. . So what? How would your subcontractor cope with loss of 20% of their cash flow? Could that impact their ability to fulfil their obligations on your contract? Are you affairs in order regarding tax filings and payments? If not we can help you! Finance with Flow are experts in the Construction industry along with the many and varied regulations, ensuring that you remain compliant. Contact us today to discuss your financial needs further. ☎️ 01206 326610 📧 undercontrol@financewithflow.com https://lnkd.in/gV8upBGU #outsourcedfinance #outsourcedfinancedepartment #financewithflow #financialsuccess #hmrc #CIS #constructionindustryscheme #staycompliantt

At We Contract, we pride ourselves on achieving the highest standards of compliance, supported by prestigious FCSA and SafeRec accreditations.  We understand that professionals like you need a solution that aligns with your specific industry requirements while ensuring compliance and peace of mind. ✅ Contract for Services: Our contracts are specifically designed to accommodate the needs of self-employed subcontractors in different sectors, providing clarity and transparency from the outset. ✅ Tax Status Determination: We have a thorough process in place to assess tax status based on your industry sector, ensuring compliance with tax regulations and combating false self-employment. ✅ Comprehensive Insurance Coverage: As a valued contractor, we ensure that you are covered under our business policy, offering an additional layer of protection alongside your individual coverage. ✅ Expert Self-Assessment Service: Our experienced accountancy team is well-prepared to provide self-assessment services, helping you navigate your tax obligations with ease. By extending our services beyond construction, we aim to empower self-employed contractors in diverse industries, allowing you to focus on your work while we take care of the compliance details.   Contact us for more information and learn how we can help you; 📨 info@we-contract.co.uk 📲 01244 746 690   #Compliance #RecruitmentIndustry #Contractors #CompliantPayments #TrustedPartner #ChesterPayrollSolutions

Hello LinkedIn Fam! I'm here again and today I want to talk about onerous contract in IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) Few days ago I was studying and I came across onerous contract. So what's onerous contract ? 💡An onerous contract is a contract where the unavoidable total costs to be incurred to perform the contract exceed the expected total revenue. For example, a company enters into a construction contract to build a building for a fixed price. During the construction, the company realizes that the costs to complete the project will significantly exceed the contract price. This contract becomes onerous, and the company will need to recognize a provision for the expected loss. In essence, an onerous contract is one that is expected to result in a financial loss for the company. 💡 Another explanation I can give is that it's a contract entered into with another party under which the unavoidable costs of fulfilling the terms of the contract exceed any revenue expected to be received from the goods or services supplied or purchased directly or indirectly under the contract. In this case the entity would have to compensate the other party if it doesn't fulfil the terms of the contract. I'm willing to learn more about onerous contracts 🙏 Let me know your thoughts in the comments below! #IAS37 #Accounting #OnerousContracts #FinancialStatements #AccountingTips

🌟 Attention Construction Professionals! 🛠️ We know that managing the intricacies of the Construction Industry Scheme (CIS) can feel overwhelming. At Accounting Matters, we're here to support you every step of the way and ensure you stay compliant with HMRC requirements. 📋 Let’s break down the CIS criteria together: Registration: Both contractors and subcontractors must register with HMRC for the CIS. This ensures the right tax deductions are made, giving you peace of mind. Deductions: Contractors need to deduct money from subcontractor payments and pass it to HMRC. These deductions are advance payments towards the subcontractor's tax and National Insurance. Monthly Returns: Contractors have to file monthly returns detailing all payments made to subcontractors, including deductions. We know this can be time-consuming, but it's essential for compliance. Verification: Contractors must verify whether their subcontractors are registered with HMRC before making any payments. It's a crucial step in avoiding penalties. Record-Keeping: Keeping thorough records of all payments, deductions, and CIS statements is vital. It’s key for audits and maintaining compliance, and we can help you stay organized. 🔍 Feeling overwhelmed? We're here to help. Our team at Accounting Matters is dedicated to making the CIS process as smooth and stress-free as possible for you. 📞 Reach out to us today and let us take the burden off your shoulders, so you can focus on what you do best – building and creating. #AccountingMatters #ConstructionIndustry #CIS #HMRCCompliance #ConstructionFinance #BusinessSupport

If you’re a registered contractor of the Construction Industry Scheme, it’s important to manage your subcontractor invoices correctly. If you don't, it can be costly in more ways than one 😳 👉 What is the Construction Industry Scheme (CIS)? Under the Construction Industry Scheme, contractors deduct money from subcontractors’ payments and send it to HMRC. This acts as an advance towards the subcontractors' tax and National Insurance. 👉 How Does CIS Work? When a subcontractor invoices you, you deduct the CIS amount from their payment and pay the remainder. The deducted funds are reported to HMRC monthly. 👉 Who Needs to Register for CIS? If you hire subcontractors, you must register with HMRC for CIS. You’ll need to deduct the appropriate amount from payments and send it to HMRC. 👉 Is CIS Mandatory? Yes, CIS is mandatory. Late CIS returns incur penalties starting at £100, rising to £200 the next month, and even higher if delays continue. If it sounds overwhelming - don't worry, we can help with this! Get in touch here... 📞 0330 912 1828 📧 info@tradermate.co.uk 🌐 https://bit.ly/4aLE6c5 #tradermate #constructionindustryscheme #bookkeeper