CIS VAT Plus – How it works

If you are a sole trader or sub-contractor working in construction and turnover between £30,000 and £150,000 per year, registering for our enhanced VAT Plus service could save you a minimum of 5.5% on your VAT bill.

If you earn or expect to earn in excess of £83,000 per annum you will be required to register for VAT, however you can register in advance of earning this amount and take advantage of the Flat Rate Scheme via our VAT plus service.

Our VAT Plus service gives you a completely managed VAT service and could also increase your take home pay.

As a VAT plus customer, we will:

  • Register you for VAT
  • Register you for the VAT Flat Rate Scheme
  • Monitor the amount of VAT you need to pay
  • Calculate your quarterly VAT payments
  • Submit your quarterly VAT returns (monthly or quarterly as required)

All you will have to do is make sure you keep enough money aside to cover your VAT payment, pay HMRC within their payment deadline once we have submitted your return and keep us up to date of any changes to your income.

What next?

  • You register as you would for our CIS Payroll service and let us know you are looking for the VAT Plus package
  • We will ask you to sign a short additional set of terms and conditions and set you up with the enhanced VAT Plus service
  • We will help you register for a Construction Industry Scheme UTR (unique tax reference) number and as self-employed status if you are not already registered
  • We will register you for VAT as well as the Flat Rate Scheme and notify you of your flat rate percentage
  • When we have your billing details or timesheet we will invoice your clients, plus VAT taking care of any credit control issues along the way
  • As soon as your client(s) pay the invoice, we will pay the amount (inclusive of VAT), with CIS tax and our administration fee deducted direct into your account
  • We will send a text the same day to notify you the money has been paid into your account and email your payslip
  • Each month we will monitor the amount of VAT you have to pay
  • Each quarter we will notify you of your VAT liability and submit your quarterly VAT return (we are not able to pay VAT on your behalf, so you will need to arrange to make payment yourself)
  • From the first day of registration, you will benefit from Employers and Public Liability Insurance for each week you work through us
  • Our brokers can also provide Site Accident Insurance to cover you whilst at work
  • There are no set up or cancellation fees for the VAT Plus Service
 
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