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

Tax, CIS and Making Tax Digital for self-employed labourers Most site labourers supply their time and a few hand tools but no materials, so CIS is taken from almost the whole of each invoice. Whether you are self-employed at all depends on how each job runs, not on being registered for CIS. Making Tax Digital counts your self-employed pay before CIS deductions; wages taxed through PAYE don’t count. HMRC says almost anything done on a building site in connection with the building work is likely to be construction, so general labouring on site is usually inside CIS. That includes site clearance, digging out, moving materials around the site and the clean inside a building on completion. Travel to a run of temporary sites: usually allowed from home when you work at two or more sites in a year. Bus, train or taxi fares to site: fares are travel costs like fuel. Possibly not. HMRC’s manual says a general labourer working full-time for one contractor over the long term, paid by the hour or day, closely directed and given everything but small tools, is likely to be an employee. Being registered for CIS does not change that, because the terms of the job decide it. Read the full guide for labourers, with every source, at rightotax.co.uk.