The UK Tax and Accounting Podcast from I Hate Numbers:

Handling money in your relationship is this week's I Hate Numbers podcast. Money is one of the biggest sources of tension in relationships.

I can help you learn how to handle money in your relationship and stop the arguing.

You will be able to work together as a team, have fewer arguments and be happier with your partner.

Listen to find out more.

 I'm going to share four tips with you.

• Firstly, be open about your  money, monsters
• Secondly, have empathy for your partner's money mindset
• Thirdly, Make sure your financial goals align
• Lastly, Embrace the ‘B’ word
• Moreover, don’t use judgmental or negative language.  Words like reckless, irresponsible is maybe how you feel.  However, these aren’t the words to encourage dialogue.

By understanding and applying these tips, you'll be on your way to having a more peaceful and harmonious relationship - regardless of how much (or little) money is involved.

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast.  Connect with me on Instagram,

YouTube, Twitter, LinkedIn and Facebook.

Choosing your targets, the types and difficulty needs thought and consideration.

Choosing your targets is the right way to achieve your success.  Reaching your Northern star is your main aim, moreover having targets helps monitor your progress.  You are not alone!  Let me guide you along the path so we can both reach our goals together.

It's a question many businesses face - what should our targets be? How tough should they be? Should we focus only on financial targets, or are there other areas we should be looking at? In this podcast I’'ll look at why financial targets might not be the best option for your business and explore some of the other options you have.

If you're looking to set targets for your business, listen to find out more .  You might just find something that works better for you than strict financial targets.

So, what should your targets be? Should you focus exclusively on financial goals? There are a few things to consider when making this decision. Listen to the podcast to find out more about why financial goals might not be the best option for your business and explore other areas you could target. We discuss different types of targets and how tough they should be, so that you can make an informed decision for your business. Which type of target will work best for you?

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

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Setting SMART targets is this weeks I Hate Numbers podcast.

If your goal is vague, too distant and you lack commitment then this article might be for you. Setting SMART targets can help make that goal seem achievable.

Those smart targets provide focus and act as a stepping stone towards those final goals. Smart stands for specific measurable, acceptable, relevant and time bound.

You will feel more motivated when reaching those milestones along the way because they are clear steps in the right direction rather than just being told “you’re doing great!” or “keep going!” without any real idea of what needs to happen next.

It's important to know where you're going if you want to get there quickly and easily with less stress along the way. So let's take a look at how you can achieve your goals using our SMART acronym.

Listen to find out more.

Setting SMART targets is the right to progress to your success.  Getting to your Northern star is the holy grail.  Moreover, having a route mop, a plan will guide your path.  You don’t have to go through the journey alone though! Let me guide you along the path so we can both reach our goals together.

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

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How to be successful in business, what does that mean to you?  When you hear people talking about being successful in business,

• Firstly, what image floats through your mind?
• Secondly, how does that make you feel?
• Thirdly, do you feel a sense of achievement failure?

Not quite sure. All of those and more do you feel you're achieving your success? Do you feel like an imposter? Are you progressing to where you should be?

You're not alone. Most people feel this at some point in their business lives.  Please don't worry. In this podcast,

• Firstly, I'm going to look at success.
• Secondly, what people think it looks like against the reality of what it actually is.
• Finally, I'm going to talk to you about how you achieve success and share some tips and examples along the way.

Lao Tzu, a life coach born over 2,500 years ago said 'The journey of a thousand miles begins with one step.'

Success is about achieving what you have set out to to do. Not just getting to your own Northern Star but the steps along the way too!

How to be successful in business is not a destination, it’s a journey. Your journey takes hard work, application, and lots of perseverance. But most importantly, it takes learning from your mistakes and continuously progressing forward.

💡 Stay focused on your goals

💡 Don’t compare yourself to others

💡 Keep moving forward. Bumps in the road, and f*** ups happen, so don't beat yourself up over it.

💡 Measure, those small steps

Once you've learned what success actually is, you can start to work on achieving it in your own business. It won't be easy, but it will be worth it. I promise.

Listen to find out more

How to be successful in business is what we all aim for.  You don’t have to go through the journey alone though! Let me guide you along the path so we can both reach our goals together.

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

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Pro Active Resolutions

The Numbers Crew- Here to help you!

Product Grouping for Your Business is an incredibly powerful way to run your business. It gives you

• Firstly, great insights
• Secondly, lessens your financial and mental anxiety about the future
• Thirdly, allows you to gauge profitability with a great degree of accuracy.

In this weeks I Hate Numbers podcast I'm going to

• Firstly, outline the idea of what product groups are
• Secondly, give you examples of product groups
• Thirdly, how they can help your business
• Finally, show you how it all fits together.

Product Grouping for Your Business shows you where there's money being made in your business.  You'll spend less time spent worrying about whether or not things are going right and more time actually working towards improving them! That sounds pretty good, doesn't it? Let's get started!

Product grouping is a powerful way to run your business. The first type of product group that may come to mind is when you sell products in groups based on their price point or size.  For example,  if I sold ladies' shoes from 15-40 pounds. But there are other types too! For example, some companies will want an assortment of items within one category (like all lipstick shades) while others might have specific needs at certain points in time (say, seasonal clothing).

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

https://www.stitcher.com/podcast/proactiveresolutionss-podcast

https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

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Wondering how to price your products or services so you can make a profit?

You're not alone. Figuring out the right price is one of the biggest challenges business owners face.  In this podcast I am going to tell the 2 key stages in pricing, don’t worry about the number crunching I have FREE online calc that steps in to help

Firstly, focus on your 2 key financial outcomes

Secondly, consider 5 key factors that will help you set a price that meets your business objectives

Listen now and learn how to price your products or services for success!

You need to make sure you're covering your costs and making a profit. In this podcast, I'll explain the two main financial outcomes you need to meet, and share a FREE online pricing calculator to help get it right.

Pricing can be tricky - but it's essential for making a profit in your business.  Listen more so you can get it right every time.

Knowing how to price your products or services will make you money, now and in the future.  Moreover, you will achieve two key financial objectives.

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

https://www.stitcher.com/podcast/proactiveresolutionss-podcast

https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

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Pro Active Resolutions

The Numbers Crew- Here to help you!

Five Money and Tax-Saving Tips is this weeks theme.  Do you want to save money on your taxes?

You're in luck! In this 100th episode, I'm going to share five tips that will help you do just that. Furthermore, these tips will help you earn more money in the future.

So whether you're already paying too much or are looking for ways to get a refund, listen up!

Who doesn't want to save money on their taxes? These tips are easy to follow and will make a big difference in how much money you keep in your pocket. So don't wait any longer, start following these tips today!

Click here to Listen to find out more and how to save money on your taxes.

These five Money and Tax Saving Tips will save and earn you money now and in the future.  Moreover there is the opportunity and possibility to relook at the past and get some tax back.  Kerching!

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

https://www.stitcher.com/podcast/proactiveresolutionss-podcast

https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/

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Pro Active Resolutions

The Numbers Crew- Here to help you!

Self Assessment tax returns can feel stressful, especially when you are not sure whether you need to file, what information to include, what expenses you can claim, or what happens if you cannot pay your tax bill. Understanding the process helps you avoid surprises, keep better records and deal with HMRC with more confidence.

Millions of people complete Self Assessment tax returns every year. Some are self-employed, some receive rental income, some have dividends or capital gains, and others have tax situations that need reporting outside PAYE.

In this episode, we explain who may need to complete a tax return, what goes into it, what information you need to gather, what self-employed expenses you may be able to claim, and what to do if you cannot pay the tax due.

If you are self-employed and want a wider foundation first, our episode on Tax basics for self employed: What You Need to Know is a useful starting point.

Self Assessment matters because it puts responsibility on you to report income, claim expenses correctly, calculate the tax position and meet the relevant deadlines.

Filing a return does not always mean you will owe tax. You may have already paid enough through PAYE, or you may even be due a refund. However, if tax is due and deadlines are missed, interest and penalties can follow.

The better your records, the easier the return becomes. Good records also help you claim what you are entitled to and support the figures if HMRC asks questions later.

You may need to complete a Self Assessment tax return if your income has not been fully taxed before it reaches you, or if HMRC needs more information about your income, gains or claims.

This can include self-employed income, rental income, untaxed income, capital gains, partnership income, foreign income, dividends, or certain tax charges such as the High Income Child Benefit Charge.

For self-employed people, it is important to remember that income means sales, fees or turnover before expenses, not just profit.

A Self Assessment tax return usually has a main section and supplementary pages. The pages you need depend on the type of income or gains you have.

The main part includes personal details, your National Insurance number, your Unique Taxpayer Reference, and details such as savings income, pension payments, Gift Aid claims and dividends.

Supplementary pages may cover employment income, self-employment, partnerships, UK property income, overseas income, capital gains, or residence status.

Before you start your return, gather the evidence behind the numbers. Employment income may need documents such as a P60, P45 or P11D. Self-employment income should be supported by accounts, invoices, receipts and bank records.

Rental income should be supported by property records. Capital gains need details of what you sold, when you sold it, what it cost, and any allowable costs connected to the sale.

The key question is simple: can you back up the figures that go into your tax return?

If you are self-employed, tax is usually based on your business profits. That means your income less tax-allowable business expenses.

Costs that are wholly and exclusively for business may be allowable. This can include items such as software subscriptions, advertising, business supplies, equipment, and other business-related costs.

Personal costs, such as holidays, cinema trips or personal drawings, are not business expenses. Mixed costs, such as mobile phone use, may need a reasonable business/private split.

Simplified expenses can make some claims easier for sole traders and partnerships. They may apply to areas such as vehicle mileage, working from home, and living at business premises.

For vehicles, you may be able to use mileage rates instead of working out the actual costs of buying and running the vehicle. However, once you choose a method for a vehicle, the choice can affect how you claim in later years.

Working from home can also involve either actual cost calculations or flat-rate methods, depending on your circumstances. Always check the current rates and rules before using old figures from previous tax years.

Self Assessment has important dates. You may need to register by 5 October after the end of the tax year. Paper returns usually have an earlier deadline than online returns.

Online tax returns are normally due by 31 January, and tax due is usually payable by the same date. If you want eligible tax collected through your PAYE tax code, an earlier deadline can apply.

The original episode also referred to a specific 2021/22 filing concession. That was time-specific, so the live page should rely on current HMRC dates before publishing.

Payments on account can catch taxpayers by surprise. If your Self Assessment bill is high enough, HMRC may ask you to make advance payments towards the next tax year.

This can make the January payment feel larger than expected because you may have a balancing payment for the year just ended and a first payment on account for the next year.

Our episode on Payments on Account Explained: What They Are, When to Pay and How to Reduce Them goes deeper into how those payments work.

If you cannot pay your tax bill, do not hide from it. File the return first, then deal with the payment problem.

HMRC may allow a Time to Pay arrangement if you meet the conditions. Interest may still apply, but dealing with the issue early is usually better than ignoring the bill and waiting for HMRC to chase.

If you miss a deadline and penalties become an issue, our episode on HMRC Reasonable Excuse: How to Appeal a Tax Penalty Successfully explains what to consider when challenging a penalty.

• Do you need to complete a Self Assessment tax return?
• Have you registered and received your Unique Taxpayer Reference?
• Have you gathered employment, self-employment, property and investment records?
• Have you included all relevant income?
• Have you checked whether capital gains need reporting?
• Have you claimed only allowable business expenses?
• Have you checked current simplified expenses rules?
• Have you planned for payments on account?
• Have you saved enough for the tax bill?
• Have you filed before the deadline?

A Self Assessment tax return is how you report income, gains, tax reliefs and tax due to HMRC when your tax position is not fully dealt with automatically.

You may need one if you are self-employed, receive rental income, have untaxed income, receive dividends, make capital gains, have partnership income or need to report specific tax charges.

You can usually claim allowable business expenses that relate to running your business. Personal costs are not allowable, and mixed-use costs may need a reasonable business/private split.

File the return first, then contact HMRC or check whether a Time to Pay arrangement is available. Ignoring the bill can lead to interest, penalties and more stress.

• 00:00 – Why tax returns can feel stressful
• 00:19 – What we cover in the episode
• 00:58 – Financial awareness, profit, tax and time
• 01:25 – Who needs to complete a tax return?
• 02:40 – How income tax is worked out
• 03:00 – Core return and supplementary pages
• 03:23 – Personal details, UTR, savings, pensions and dividends
• 04:08 – Employment, self-employment, property and capital gains pages
• 04:29 – Information and evidence needed for the return
• 05:51 – What self-employed people can claim
• 06:33 – Mixed expenses and business/private splits
• 06:50 – Capital allowances and equipment
• 07:14 – Entertaining and business meetings
• 07:36 – Simplified expenses
• 08:36 – Vehicle mileage claims
• 09:52 – Working from home claims
• 10:43 – Filing dates and deadline concessions
• 11:03 – What to do if you cannot pay
• 11:23 – Time to Pay arrangements
• 11:45 – Time-specific income support reminder
• 12:02 – Final recap

• Personal Tax Return Explained: Who Needs One, What to Include and Key Dates
• Five mistakes to avoid on your tax return
• Tax basics for self employed: What You Need to Know

Self Assessment tax returns are much easier to deal with when you know whether you need to file, what information you need, what expenses you can claim and when payment is due.

Do not wait until the deadline. Gather your records, check your tax position, save towards the bill and ask for help early if you cannot pay.

Plan it, Do it, Profit.

The I Hate Numbers podcast helps business owners understand accounting, tax, finance, profit, cash flow, and business planning in a practical way. We simplify financial topics so you can make better decisions and feel more confident with your numbers.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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Are you a carer and want to know How to claim Carers Allowance?

This is money given to people who look after someone with substantial caring needs. It’s not means tested, so it doesn’t matter how much you earn or own.  Furthermore, if you spend 35 hours or more each week looking after someone, then you could be eligible for this benefit.

In the UK there are around 6 million carers and over 1 million of those are under 16 years old. That's why I'm here to help!

Carer’s allowance can give your life back on track by giving you financial support and helping ease some of the pressure that comes with caring responsibilities.

I want to make sure that everyone gets what they deserve from their hard work as a carer - which is why I’ve recorded this podcast just for YOU!

This is straightforward and you could get £67.60 a week if you care for someone at least 35 hours a week and they get certain benefits.

Moreover, you do not have to be related to, or live with, the person you care for.

You do not get paid extra if you care for more than one person.

If someone else also cares for the same person as you, only one of you can claim Carer’s Allowance.

How to claim Carers Allowance is a need to know if you are one of the many millions with caring responsibilities.  Moreover, How to claim Carers Allowance, is there to help provide financial support for the many millions of carers.

For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.

My podcast will help.

Listen to find out more.

Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.

You can make more profits, save tax and time, improve your well-being and your money mindset.

Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.

If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,

https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288

https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins

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Pro Active Resolutions

The Numbers Crew- Here to help you!

CIS scheme explained in plain English helps contractors and subcontractors understand how the Construction Industry Scheme works. If you work in construction, pay subcontractors, or get paid by contractors, CIS affects registration, verification, tax deductions, monthly returns, payment statements and how tax is later credited against your bill. Understanding the scheme helps you avoid HMRC problems, protect cash flow and keep construction tax records under control.

Explaining the CIS scheme looks at one of the key tax compliance areas for construction businesses.

We explain what the Construction Industry Scheme covers, what contractors and subcontractors are, when registration matters, how deductions work, why verification is important, and how CIS reporting affects sole traders and limited companies.

For the wider self-employed tax picture, our episode on Tax basics for self employed: What You Need to Know is a useful next step.

The construction sector is large, busy and full of contractor-subcontractor relationships. That is one reason CIS exists.

The scheme was introduced to reduce tax evasion in the construction industry. Under CIS, contractors deduct tax from certain subcontractor payments and pass those deductions to HMRC.

Those deductions are not an extra tax in themselves. They are advance payments towards the subcontractor’s tax and National Insurance. However, mistakes with registration, deductions or returns can still lead to penalties, repayment problems and cash flow pressure.

The Construction Industry Scheme, usually shortened to CIS, is a UK tax scheme for construction work.

It tells contractors how to deal with payments made to subcontractors. In many cases, the contractor must deduct tax before paying the subcontractor and then pass that deduction to HMRC.

That means both sides need to understand their role. The contractor must deduct and report correctly. The subcontractor must register, keep records and claim credit for deductions through the right tax route.

A contractor is a person or business that pays subcontractors for construction work.

You may also count as a contractor even where construction is not your main trade, if your business spends enough on construction work over the relevant period.

The key point is practical. Once you pay subcontractors for construction work, you may have CIS responsibilities. That means registration, verification, deductions, payment statements and monthly returns.

A subcontractor is a person or business that carries out construction work for a contractor.

That can include individual tradespeople, sole traders, partnerships and limited companies. The episode gives practical examples such as plasterers, electricians and ground workers.

A business can also be both contractor and subcontractor. For example, you may be paid by a main contractor on one job and pay your own subcontractors on another. In that situation, you need to understand both sides of the scheme.

CIS covers most construction work to permanent or temporary buildings and structures, as well as civil engineering work such as roads and bridges.

Construction work can include site preparation, foundations, access works, demolition, dismantling, building work, alterations, repairs, decorating, and installing systems for heating, lighting, power, water and ventilation.

Cleaning the inside of buildings after construction work can also fall within the scheme.

Not everything connected with construction falls under CIS.

The episode highlights several exclusions, including architecture, surveying, scaffolding hire with no labour, carpet fitting, making construction materials, delivering materials, and work on construction sites that is clearly not construction work, such as running a canteen or site facilities.

This matters because the wrong classification can lead to incorrect deductions or missing deductions. Where the work sits near the boundary, check the current HMRC guidance before deciding.

Contractors must register for CIS before they start paying subcontractors under the scheme.

Subcontractors should also register. A registered subcontractor usually suffers deductions at the standard rate. An unregistered subcontractor normally suffers deductions at the higher rate.

Registering correctly helps avoid unnecessary deductions, confusion and future tax-record problems.

Before paying a new subcontractor, a contractor must verify them with HMRC.

Verification tells the contractor whether to pay the subcontractor gross, deduct at the standard rate, or deduct at the higher rate.

This is not a discretionary choice. The contractor must follow the payment status given through the HMRC verification process.

The main CIS deduction rates are:

• 20% for registered subcontractors paid under deduction;
• 30% for unregistered subcontractors or where HMRC tells the contractor to use the higher rate;
• 0% where the subcontractor has gross payment status.

The deduction is an advance payment towards the subcontractor’s tax and National Insurance. It is not the same as PAYE employment, and it does not automatically mean the subcontractor has no further tax to deal with.

One common mistake is assuming CIS only applies to a narrow labour amount and ignoring related payments.

The episode explains that travel, subsistence and accommodation charged under the construction contract can form part of the overall contract value for CIS purposes.

However, current HMRC rules also require care. Contractors normally start with the subcontractor’s gross invoice and then remove items such as VAT and qualifying direct materials before applying the CIS percentage to the remaining amount. Therefore, the correct answer is not “labour only” and not always “the full invoice” either. The calculation must follow the CIS deduction rules.

Materials need careful treatment under CIS.

Where the subcontractor has paid directly for qualifying materials used for the job, those material costs may be excluded from the amount on which CIS is calculated. Evidence matters.

Travel, subsistence and accommodation are different. Where those costs form part of what the subcontractor invoices under the construction contract, they can fall into the CIS calculation. This is one area where mistakes are common, so contractors and subcontractors need proper records.

Gross payment status means the subcontractor can be paid in full, without CIS deductions being taken at source.

This can help cash flow, but it comes with conditions. HMRC looks at compliance history, business activity, bank account arrangements and turnover tests before granting gross payment status.

Gross payment status does not remove the tax bill. It changes when the tax is paid. The subcontractor still declares income and pays tax through Self Assessment or Corporation Tax, depending on the business structure.

Contractors normally need to report CIS payments to HMRC each month.

The monthly return shows payments made to subcontractors, whether they were paid gross or under deduction, and the deduction rate used.

Missing returns can lead to penalties. Even nil periods need attention unless HMRC has been told the scheme is inactive for a period.

Where a contractor makes CIS deductions, the subcontractor needs a payment and deduction statement.

This statement helps the subcontractor prove what was deducted and later claim credit for those amounts.

Poor records can create problems when preparing a Self Assessment tax return, company records or a CIS repayment claim.

CIS deductions are credited against the subcontractor’s tax position.

A sole trader or partner normally claims credit through Self Assessment. A limited company subcontractor may be able to offset CIS deductions against PAYE, National Insurance and other liabilities during the year, with any remaining claim dealt with through the appropriate company process.

This is why monthly CIS statements and clean bookkeeping matter. Without evidence, the deduction may be harder to match, reclaim or offset correctly.

CIS can also overlap with VAT reverse charge rules in construction.

They are separate rules, but they often affect the same construction businesses. CIS deals with deductions from subcontractor payments. VAT reverse charge deals with who accounts for VAT in certain construction transactions.

Our episode on VAT Reverse Charging in the UK: When It Applies and How to Record It is a useful supporting step where VAT also applies.

• Are you a contractor, subcontractor, or both?
• Have you registered in the correct CIS capacity?
• Have you checked whether the work is covered by CIS?
• Have you identified any exclusions before invoicing or deducting?
• Has the contractor verified the subcontractor with HMRC?
• Is the correct deduction rate being used?
• Has VAT been excluded before calculating CIS where relevant?
• Are direct material costs supported by evidence?
• Are travel, accommodation and subsistence being treated correctly?
• Are monthly returns, payment statements and records up to date?

The Construction Industry Scheme is a UK tax scheme where contractors deduct money from certain subcontractor payments and pass it to HMRC as an advance payment towards the subcontractor’s tax and National Insurance.

Contractors must register where they pay subcontractors for construction work. Subcontractors should register to avoid the higher deduction rate. A business can be both contractor and subcontractor.

The usual rates are 20% for registered subcontractors, 30% for unregistered subcontractors, and 0% where the subcontractor has gross payment status.

CIS calculations need care. Contractors usually start with the gross invoice, remove VAT and qualifying direct material costs, then apply the CIS rate to the remaining amount. Evidence for materials matters.

• 00:00 – Construction sector size and why CIS exists
• 00:23 – What the episode covers
• 01:09 – Financial awareness and tax compliance context
• 01:32 – What counts as a contractor
• 02:04 – What counts as a subcontractor
• 02:21 – Registering as contractor, subcontractor, or both
• 03:20 – Construction work covered by CIS
• 03:45 – Repairs, decorating and installation work
• 04:02 – CIS exclusions and non-construction site work
• 04:41 – CIS deductions and tax collector role
• 05:26 – 20%, 30% and gross payment status
• 05:55 – Invoices, VAT and common deduction mistakes
• 06:44 – Travel, subsistence and accommodation
• 07:04 – Gross payment status explained
• 08:23 – Offsetting CIS suffered and CIS deducted
• 08:49 – Limited company treatment
• 09:14 – Sole trader treatment through Self Assessment
• 09:34 – Final recap: rates, verification and monthly returns

• Tax basics for self employed: What You Need to Know
• Tax Treatment for Sole Traders Explained
• VAT Reverse Charging in the UK: When It Applies and How to Record It

The CIS scheme is a practical tax system for construction work. Contractors need to register, verify subcontractors, apply the correct deduction rate, file monthly returns and give deduction statements. Subcontractors need to register, keep records and make sure deductions are credited properly.

The biggest mistake is treating CIS casually. The scheme affects cash flow, tax records, invoices, monthly reporting and HMRC compliance. Good bookkeeping and clear CIS processes make the whole system easier to manage.

Plan it, Do it, Profit.

The I Hate Numbers podcast helps business owners understand tax, CIS, VAT, Self Assessment, payroll, bookkeeping, accounting and business finance in a practical way. We simplify financial topics so you can make better decisions and feel more confident with your numbers.

If you need support with CIS registration, subcontractor verification, CIS deductions, monthly returns, bookkeeping or construction tax records, you can contact us for an initial chat.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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