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HMRC's Guide To Keeping Records For CIS Subcontractors
(This information is provided by HMRC and can be found on the HMRC website by clicking here page 16)
Subcontractors In The Construction Industry
You should keep a record as you go along of all the money due to you from contractors and anybody else you do work for. Your record should show:
• the name of the contractor or client
• how long you worked for them for every contract or job
• the amounts you have received
• any amounts that are due to you.
You should keep copies of all invoices you issue. You will also need to keep details of the costs of the materials that you used to do the job. If you have been paid under deduction, that is, with an amount taken off your payment, on account of your tax and National Insurance bill, your contractor should have given you a Payment and Deduction Statement (PDS) for each payment you have received. The PDS should show how much you have been paid and how much has been deducted from your payment. If you haven’t been given these statements, you should go back to the contractor and ask for them as you will need them to help you prepare your tax return. You are not, however, required to send them in with the return.
You will need to keep bills for any items you claim as business expenditure and separate details of private and business mileage if you use your own car or van for business.
You need to keep all passbooks and statements from bank and building society accounts you use for your business transactions, along with paying-in books and cheque stubs.
You should also keep details of:
• any private money paid into any bank or building society account that you use for your business
• any amounts you take out of that account, or in cash, for your own or your family’s personal use.
If you make payments to other subcontractors in the construction industry, you need to operate the Construction Industry Scheme on all payments made to those subcontractors. Where you are
required to make deductions from any payments to your subcontractors, you should make sure that you give them Payment and Deduction Statements (PDSs).
For more advice about the Construction Industry Scheme go to www.hmrc.gov.uk/cis
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