Tax & Accounting

Construction Industry Scheme - commonly referred to as CIS is a system designed for persons self-employed in construction. HM Revenue & Customs conducts the registration process, and the employer should deduct the tax.

For CIS registered persons the tax rate is 20% , and 30% for nonregistered.

After April 5th of each year, every CIS registered person is required to settle with HMRC. Lack of such settlement will cause the office to impose a penalty of £ 100.

It concerns the area of ​​human resources and payroll. It consists in preparing a pays sheet for the employees and conducting HR matters. This service is based on a system called PAYE (Pay as you earn).

The Payroll system includes:

Registration of employees as well as de-registration of employees with whom the employment contract has expired or has changed,

Preparation of payroll, salaries,bonuses, etc.,

Payslip preparation,

National Insurance Contribution and income tax calculation,

Benefits calculation: Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay

Preparation of  P45, P60, P35, P14

Registration at Construction Industry Scheme and account settlement with sub-contractors.

Value-added tax in England is a goods and services tax. It is an indirect tax, and the taxation subject is the value of sales of goods and services, whereas the increase in their net value is the tax basis.​

There are three VAT rates, depending on the goods or services:

• 20% - standard rate

• 5%   - reduced rate

• 0%  -  Nil rate

There are also some goods and services that are:​

• exempt from VAT

• outside of the UK VAT system

The obligation to register for VAT arises when a business reaches a turnover of £ 85,000 or believes that it will soon exceed this threshold. Every business can register voluntarily for VAT at any time of its operation.

A TAX Refund is a reimbursement of overpaid taxes for persons in the PAYE system (Pay As You Earn). In order to receive a tax refund, You must submit a P60 from the workplace that You have been employed in, at the end of the tax year. Receiving a tax refund is possible up to 5 years retroactively.

You may apply for a refund during a current tax year if You are no longer employed in the UK or wish to leave for another country. You must submit a P45 from each place of employment in the tax year in question.

It is a sole proprietorship. It is the simplest form of conducting business in England.

The business must be registered at HMRC no later than 3 months after launching. Persons running a one-man business can remain under a contract of employment as well.  

As a self-employed person, You have to pay National Insurance Contributions. Every one-man business is assigned a UTR number, it is a 10-digit tax number. Each self-employed business is obliged to submit tax settlements. 

A Partnership is formed  when two partners who run a business establish a private proprietorship. Such a business does not have legal personality, that is, the partners are responsible for the company's obligations with all their assets, unless their contract states otherwise. 

After establishing a business, the partners should draw up an agreement regulating the company’s structure, the partner’s obligations and dispute resolving methods. Should such an  agreement not be written up, all disputes will be regulated by The Partnership Act from 1890.

Each of the partners must register with HM Revenue and Customs as a self-employed person for self-assessment purposes. This involves the obligation to account for each tax year. 

Partnerships must be reported to HMRC in order to be assigned a reference number, which will enable tax settlements.

Private company limited by shares, colloquially known as LTD it is the equivalent of a Polish limited liability company. LTD operates under the law of British businesses and has legal personality. An LTD company is created by registering at the Companies House.

It is managed by a minimum of one director and has its own capital, which is the sum of all shares of all shareholders. Shareholders are not liable with their own assets for the company’s obligations, with the exception of their shares

Means submitting a tax settlement, in which You state Your income, tax paid to HMRC and the costs incurred by the company. Tax settlement is submitted in writing no later than October 31st, and January 31st  by electronic means.

 Lack of a tax settlement causes penalty imposed by the office. The penalty amount is £ 100 and will increase until a settlement is submitted.

UK GHIC or UK EHIC - The UK Global Health Insurance Card (GHIC) lets you get necessary state healthcare in the European Economic Area (EEA), and some other countries, on the same basis as a resident of that country. This may be free or it may require a payment equivalent to that which a local resident would pay.

NIN - Each employee in Great Britain should have their own one-time National Insurance Number (equivalent to the Polish Tax Identification Number - NIP), known as NIN.