Curious about how your tax rebate as a CIS subcontractor gets worked out? Here’s the breakdown:
The Basics:
- What You Earned: All the money you’ve made from jobs.
- What You Paid: The CIS tax your contractor took off your earnings.
- Your Spending: Legit work-related expenses you can claim.
The Math:
- Subtract the CIS Deductions and Expenses from Your Earnings. This gives you your ‘profit’ for tax purposes.
- Compare with Your Tax-Free Allowance. Everyone gets a chunk of earnings tax-free. If your ‘profit’ is below this, you might get all the CIS tax back.
- Look at Tax Bands. If your ‘profit’ is above the tax-free allowance, how much rebate you get depends on which tax band you fall into.
The Outcome:
- Underpaid? If your deductions were more than what you owe, hello rebate.
- Overpaid? If not enough tax was taken out, you might owe a bit more.
Tips:
- Keep Records: All your payslips, receipts, and CIS statements.
- Check Allowances and Expenses: Make sure you claim what you’re entitled to.
- Ask for Help: Tax stuff can be tricky. At TIK TAX we're here to help you relax about the tax!