Construction Industry
In order to work in the construction industry in the UK, an individual needs to be licensed by the Construction Skills Certification Scheme (CIS). The scheme is administered by the Ministry of Economic and Business Affairs in the UK. A professional advisor who holds the relevant qualifications is called a consultant. There are many professional advisors who are members of the construction industry scheme.
Vibrant Market in the UK
The construction industry is an active and vibrant market in the UK. As a result there are many opportunities for individuals who wish to start their own business in this field. A professional advisor who is licensed can help you find these opportunities and guide you to choose a career path. It is vital to note that only consultants can deduct their allowable expenses from their income. Any unallowable expenses are at the discretion of the professional advisor and must be approved by him or her. An important factor to consider when making financial reports to the organization is that certain types of professional advisory services may be excluded from tax reporting by the UK tax authority.
Expenses Related to a Home Office
If you run your business out of your home, you will need to report expenses related to a home office. This includes a mortgage interest rate and loan interest, travel costs and even telephone calls related to making repairs to your home. When using your home as a workplace, you will be able to deduct your costs related to heating, ventilation and air conditioning, electricity and gas. Some professional advisors will not allow you to deduct expenses which relate to driving between work sites and home. However, some professional tax advisors do understand that these expenses are necessary as part of the job.
Tax Allowances vary from Professional Advisor
Tax allowances vary from professional advisor to a professional advisor and you need to ensure that you are fully aware of what is not allowed in deductions. One of the best ways to get this information is to talk to an accountant. A professional advisor should have a detailed knowledge of UK tax law along with accounting knowledge to help you assess your tax position. You can ask a professional advisor how the tax regime works for your profession so that you are better prepared to discuss any financial matters with your accountant.
Several Different Types of Construction-Industry Schemes
There are several different types of construction-industry schemes which include: professional fees, directors’ fees, land charges, machine charges, expenses relating to special tasks, special payments and exit contribution. A professional advisor will be able to help you work out which of these will be the most beneficial for you and your business. You may be able to make further savings if you are able to structure your expenses in line with the construction industry scheme that you have in place.
Total Allowable Expenses
When it comes to determining the total allowable expenses, the UK tax office will take into account several factors including the amount of time that you have spent working in your trade, the total number of hours worked and any additional equipment that you may have purchased. In order to determine the size of the allowable expenses it is essential that you break your figures down by both time and dollar value. It may be helpful for you to consider all of the costs that you incur in order to ensure that your construction industry scheme is the right one for you. The tax rules are quite complex and can often confuse even experienced advisors. If you are unsure what the law says, it may be advisable to get the services of a chartered accountant.
Ready to Submit Your Application
Once you have all of your data in order, you will then be ready to submit your application and get approved for a construction industry scheme. Once this has been completed it is important to remember to keep accurate records. This will help you prove that you incurred the correct amount of allowable expenses. Not only should you keep track of the tax costings, you should also make sure that you keep track of the amounts of materials, machinery or tools that you purchase. You will need to prove that all purchases made within the construction industry scheme were within the scope of what you had intended to pay as tax.
Extensions are Usually Reviewed Annually
When you have spent a year within the construction industry scheme, you will then be able to apply for an extension. The extensions are usually reviewed annually so make sure that you submit all of the appropriate documentation for the next year in order to keep your business running. This can also be used as a way to prove that your business has lasted for more than one year. If you are approved, you will be able to continue operating your business while at the same time getting tax rebates on all of your expenses.
