Tax, CIS and Making Tax Digital for self-employed builders

Tax, CIS and Making Tax Digital for self-employed builders Builders often sit on both sides of CIS: bigger contractors deduct it from them, and they deduct it from the trades they pay. New builds, extensions, alterations and repairs to buildings are all inside CIS when a contractor pays, while a homeowner pays in full. Making Tax Digital counts your takings before any deduction, and what you pay subcontractors comes off as a cost. CIS covers building, altering, repairing, extending and demolishing buildings, on new and existing property, plus the work that prepares or finishes it, such as site clearance, foundations, drives and cleaning on completion. Once you pay another trade for construction work, you are a CIS contractor too. Bricks, blocks, timber, plasterboard and fixings for jobs: materials for the work you sell. Subcontractors you pay: claim the full agreed labour cost. No. Your cost is the full labour figure you agreed. Part goes to the bricklayer and part to HMRC as their deduction, which counts towards their tax, not yours. Read the full guide for builders, with every source, at rightotax.co.uk.