What is Tax Refund?
A tax refund is a return on taxes when a taxpayer pays the excess amount of income tax to the federal or state government during the past year. Tax refunds are usually treated as bonus or liability by the taxpayers during the taxpaying procedure. Tax refunds are in reality a type of interest-free loan that an individual lends to the government. Tax refunds are also referred to as Tax returns. These refunds are primarily given back to the taxpayers at the end of the financial year. Generally, refunds are released within weeks of the filing of the annual income tax by the individual. These are issues in the form of saving bonds, personal checks, or direct deposits to the bank account of the taxpayer. CIS Tax Refunds is also a kind of Tax Refund that deals with Construction Industry Scheme.
What is CIS Tax?
CIS Tax is a specially designed tax scheme that functions over Construction industries. According to the scheme, the constructors draw up tax deduction from the subcontractors of the company and pay the money to Revenue and Customs departments. These deductions are taken as the advance payments of the subcontractor’s National Insurance and tax. These deductions are made so as to compress the amount of tax evasion in the industry. But these kinds of taxes have the basic drawback that there are instances where workers pay too much taxes.
All about Refunds of CIS Tax
CIS refunds are the tax refunds that construction workers can claim for various expenses like conveyance to the temporary workplace, medicals issues etc. under the Construction Industry Scheme. They can also claim the overpaid taxes. To claim or process the CIS Tax Refunds of Taxation one requires knowing basic step involved in it. Following are the information one needs keep in mind:
Record about the working sites
One requires knowing the information about the number of sites that they have on. The information plays a vital in processing and claiming the refunds from the governing body. The duration that the tax return covers are about 4 years, one requires keeping a detailed record of the places that one has worked during that span of time.
Statement of the CIS
One requires keeping the statement of the CIS which is basically the monthly record one receives from the constructors to state the wage and taxes one has paid. These are also referred to as the pay slips or vouchers.
Keeping one’s important documents intact like photo identity, proof of address, receipts of the expenses etc. plays a crucial part in the refunding process. These help to maximize the CIS claim of the Tax refund.
Construction workers often tend to file their own tax returns, one cannot say that it is wrong but it is necessary that knows the rules and norms regarding that. One may very easily miss out on CIS claims or make hefty mistakes during claiming the tax refund. So it necessary that one get a professional help who can guide them efficiently through the procedure of the refund claim.