Tax at Christmas (CIS)

[Richard Maggs]

Hi there, got a question about tax at Christmas for CIS (Construction Industry Scheme).

I’m self employed and wondering if you get taxed at a higher rate if you work at Christmas or if stays at the usual 20%

Thank you

 

[transportphoto]

As far as I’m aware, it stays the same. You declare you annual income… the caveat being I’m not a tax advisor.

 

[Bletchleyite]

Whether you pay basic or higher rate depends on your annual income, not what you get on a given day.

 

[greatkingrat]

If you receive an unusually large amount in one month, eg Christmas overtime, it is possible you may end up paying too much tax, but it will all sort itself out at the end of the year anyway.

 

[swt_passenger]

If you receive an unusually large amount in one month, eg Christmas overtime, it is possible you may end up paying too much tax, but it will all sort itself out at the end of the year anyway.

But if the OP is self employed (as stated) surely he won’t pay any tax at source?

 

[dastocks]

It may be that the additional income from Christmas working pushed the OP's annual income into a higher tax band, meaning the *additional* income attracted the higher rate. This can all be seen by signing up for a self-assessment/tax account online.

The fact the question has been asked at all suggests poor tax planning. If I am right and this is genuine self-employment, rather than an employment contract inside IR35, it would have been possible to arrange for the extra money to be paid a different way in order to avoid the higher tax rate.

 

[swt_passenger]

Hi there, got a question about tax at Christmas.

I’m self employed and wondering if you get taxed at a higher rate if you work at Christmas or if stays at the usual 20%

Thank you

Can you explain “Cis” in your subject please?

 

[ComUtoR]

It's Construction Industry Scheme

 

[AntoniC]

Can you explain “Cis” in your subject please?

Construction Industry Scheme - its a HMRC term for a scheme where people can be paid gross or net of income tax and account for the tax to pay when they complete their Self Assessment Tax return

 

[swt_passenger]

Construction Industry Scheme - its a HMRC term for a scheme where people can be paid gross or net of income tax and account for the tax to pay when they complete their Self Assessment Tax return

Ah right. I’ll bow out as I’m only familiar with ‘normal’ self employment where you pay in 6 monthly arrears etc etc.