Hey there, builders and shakers! We know you’re busy laying foundations, putting up walls, and making dreams come true with bricks and mortar. But there’s one foundation you might find a bit trickier to lay: the Construction Industry Scheme, or CIS for short. Don’t worry; we’ve got your back. So what is CIS, how does it affect you, and is it and how can you avoid the fines for getting it wrong? Let’s jump in. What’s the Deal with CIS? First things first – what exactly is the Construction Industry Scheme? Think of CIS as HMRC’s way of ensuring that everyone in the construction supply chain pays their fair share of taxes. It’s like a safety net for tax compliance, specifically designed for the construction industry. Contractors deduct money from subcontractors’ payments and send it straight to HMRC. Simple, right? Well, not always. But that’s why we’re here! The CIS Registration Maze Picture this: you’re a subcontractor, fresh off a successful project. You’re ready to get paid, but wait – your contractor mentions something about CIS registration. Cue the confusion. Registering for CIS is crucial. Without it, you might find yourself facing higher deduction rates or, worse, penalties. Whether you’re a contractor or a subcontractor, getting registered with HMRC ensures you’re in the clear and can keep your hard-earned money working for you. Monthly Returns: Not Just Another To-Do Now, let’s talk about monthly CIS returns. It might sound like just another item on your never-ending to-do list, but it’s actually pretty important. Each month, contractors need to file a return to HMRC detailing the payments made to subcontractors and the deductions taken. It’s like giving HMRC a monthly update on your tax compliance. Missing these returns or getting them wrong can lead to fines and headaches you definitely don’t need. Managing Deductions Imagine this: you’re a contractor with a crew of subcontractors ready to go. But before you can pay them, you need to make sure the right deductions are made. This is where things can get tricky. Too little, and you’re not compliant. Too much, and your subcontractors might not be too happy. Getting it just right is essential. And guess what? We can help make sure your records are accurate and that you’re always in the HMRC’s good books. Going for Gross Payment Status Here’s a golden nugget for subcontractors: gross payment status. This little gem allows you to receive your payments in full without any CIS deductions. It’s like getting the VIP treatment from HMRC. Of course, there are criteria to meet, and the application process can be a bit of a maze. But if you qualify, it’s definitely worth it. And yes, you guessed it – we can help you navigate the application process and increase your chances of getting approved. The Dreaded HMRC Audit The words “HMRC audit” might send shivers down your spine, but they don’t have to. If HMRC comes knocking, having your CIS compliance in order means you can breathe easy. The Navigate team is ready to represent you, manage all communications, and provide the necessary documentation. We’ll handle the nitty-gritty so you can focus on what you do best – building and creating. Expert Advice and Support Navigating the CIS landscape doesn’t have to be a solo adventure. Our team of accountants is here to offer ongoing advice and support. Whether it’s understanding your obligations, staying updated with regulatory changes, or just having someone to answer your questions, we’ve got you covered. So there you have it – a quick tour of the Construction Industry Scheme. We’re here to make CIS compliance as straightforward as possible, freeing you up to do what you love. Got questions or need a hand with anything CIS-related? Drop us a line or give us a call on 01709 589 439.

As a business owner, along with phrases like ‘I've just put on a fresh pot’ and ‘Our profits are up,’ we're almost certain that three of your favourite words are ‘tax allowable expense.’ As business owners ourselves, those words are music to our ears. The thing is, most people understand the obvious ones: a laptop for digital nomads, a portion of the rent for those that work from home, and software subscriptions for graphic designers. However, we find that many our clients aren't aware of the more obscure allowable expenses that HMRC has no problem with you claiming. So here are 10 unusual – yet permissible – expenses that you might not have considered. 1. Pet-Related Expenses Okay, so you can't claim for your Yorkie that spends most of his day curled up in bed whilst you're out at work. However, if your pet plays a role in your business, such as a guard dog in a warehouse, their related costs can be deductible. This includes food, vet bills, and other necessary expenses to keep the animal healthy and active in their role within your business. 2. Decor and Artwork If you purchase art or decor specifically for your office or business premises, these costs might be allowable. The key is that the artwork must be used by your business and be necessary for your business environment. This can be particularly relevant in spaces like restaurants or boutique hotels where ambiance is crucial. 3. Music Licenses Many businesses play music as part of creating a pleasant atmosphere, whether in a retail shop, a restaurant, or at special events. The cost of music licensing fees, for platforms such as PRS, which are used to play music legally, are allowable expenses. 4. Personal Development and Well-being Programmes Expenses for personal development for you and your team, such as stress management courses or life coaching, can also be deductible if they contribute to better business performance. Similarly, wellness programmes that promote general health can also be included if they potentially reduce business health costs. 5. Landscaping and Gardening If the appearance of your business premises is important to attracting customers, then landscaping services could also be an allowable expense. This can apply to businesses like real estate where property appearance directly influences customer decisions, or retail shops where curb appeal matters. 6. Special Clothing or Funky Costumes Costumes or special clothing required for your business that are not suitable for everyday wear are allowable expenses. This includes uniforms for staff or costumes for entertainment venues or themed restaurants. 7. Gifts Business gifts are also deductible, but with limitations. The deductible amount is currently capped at £50 per recipient each tax year. This includes both physical gifts and expenditures like tickets to events as long as it is for a business purpose. 8. Moving Machinery If your business needs to move equipment or machinery, the costs associated with the move are allowable. This can include hiring specialists to ensure equipment is safely transported and reassembled. 9. Environmental Upgrades Investments made to improve the environmental efficiency of your business operations, such as the installation of some sparkling new solar panels or upgrading to energy-efficient appliances, are allowable. Plus, some of these expenses not only reduce your tax burden but might also qualify for additional governmental incentives! 10. Bank Fees Many businesses overlook the deductibility of bank fees associated with business bank accounts or credit card charges. These fees can add up, particularly if your business transacts frequently. Conclusion While the usual suspects like travel expenses, employee salaries, and office supplies are well-known, the less obvious expenses can do a lot to bring down your tax obligation, meaning it's important you don't miss them. If you’d like to find out more about what business expenses are allowable in your business, then please get in touch with our team on 01709 589 439.