Vast majority of Polish people living in Great Britain works in construction industry. In order to be self – employed (subcontractor) in construction you need to register yourself as self – employed in CIS (Construction Industry Scheme).
To avoid £100 penalty you should do it within 3 months since the moment you start work. After registration usually in 4 – 8 weeks the revenue gives you UTR number. If you work as a subcontractor for construction company, you should give your UTR number to your employer (contractor) as soon as possible. In this situation tax is 20% high. If you do not have your UTR number, you have to pay 30% tax.
After each working month employer gives you statement (monthly CIS statement) confirming your gross earning and paid tax amount. Sometimes with specified sum for materials which employer bought to carry out work order.
After 5th April each year we are obligated to do tax settlement. We have to declare costs connected with company running and paid tax amount based on statement from company we were working as a subcontractor. Whereas people who work only freelance for different customers and do not cooperate with construction companies for longer, are obliged to pay tax each year after tax settlement for given year.
Penalty for lack of settlement is minimum £100. If you do not pay the revenue for another three months, penalty will be from £10 up to £900 per day. The last day of paying settlement is 31st January each year. Also, every self – employed person is obliged to pay National Insurance Contributions (equivalent of polish ZUS). Whether you are planning or have just started work in construction industry, please come to our office – leave it to us, you will avoid penalty, and save your money and time.
Call for your free advice 0203 490 2919 or 07716 161 381