How to register your company for CIS
In order to register your company for CIS you will need to do the following:
Call the HMRC hotline (0845 366 7899 option 3 then 3 again) and register your Limited Company for CIS. You will probably only be able to register for CIS 4 (explained below), but this will enable you to get paid.
You will need these details to register for CIS:
- When you get through to the operator tell them you would like to register as a sub-contractor and tell them that you are the director of a company.
- They will ask for your company’s Unique Taxpayer Reference (UTR Number) which appears on the blue CT41G form. Enquire with Income Made Smart here if you don’t know about your UTR.
- The company’s name and registration number.
- They will ask when you started trading. This date will be your date of company incorporation.
- They will ask what sort of work you do.
- They will ask if your company has received any payments.
- They will then read out a declaration which you will be required to agree to to move forward.
The sooner you can get this process started, the sooner you can get paid.
Information on CIS 4:
This form of CIS registration applies when the company has been newly incorporated or when the company’s turnover is below a certain level. If your company was only recently incorporated, and will only qualify for CIS 4. What it means is that, if you work through anagency and your agency pays your company for services rendered, they will deduct 20% before they pay your company. For example, if your company invoices for £1,000, the agency will only pay £800 (£200 is deducted as CIS). This 20% is paid over to HMRC under the reference of your company during the year, and counts towards the company’s tax liability for the year. If, at the end of the year, it is found that the company overpaid CIS, then the excess funds will be paid back to the company.
IMS process weekly calculations for clients taking CIS deductions into account and ensuring they take home the right pay.
We will be happy to answer any further queries you may have in this regard. Contact IMS here.
