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This is a long introduction to CIS, we hope you find it useful.

If you are new to CIS or just need a refresh please just bookmark this page. If you would like to talk to one of our support team about how to use CIS within Powered Now, just get in touch.

CIS (Construction industry scheme) is a tax law relating to work done by subcontractors for contractors in the UK. It involves the contractor deducting CIS before paying each subcontractor invoice.

Work covered by the scheme is all construction and field trade work that is subcontracted. Included are contractors and subcontractors of any type – sole traders/self-employed or companies or partnerships. Any business whose main activity is not construction but spends more than £1m per annum on construction is deemed a contractor and construction/trade work for them as subcontracting e.g. work done for Housing Associations.

CIS does not apply to work done directly for and paid directly by home owners or businesses not engaged in construction. Other work not subject to CIS includes architecture, surveying, scaffolding hire when there is no labour involved, carpet fitting, delivering materials and running a canteen or similar facilities on a construction site.

Contractors are businesses that commission work from other businesses and subcontractors are businesses that do work for other businesses. Contractors and subcontractors, including sole traders, must register under CIS with HMRC and some may need to register as both. Employees of these companies do not need to register individually.

Avoiding CIS is only possible by criminal collusion between a contractor and a subcontractor. If CIX is not deducted when it should be and the subcontractor subsequently fails to pay their tax, the contractor will be liable for payment of the unpaid tax.

Contractors can register online by clicking here.

Subcontractors can also register online or by calling the CIS helpline on 0300 200 3210.

Officially before they start work and absolutely before they pay them the first time, contractors must verify their subcontractors at construction industry scheme online. The verification process will tell the contractor which deduction rate to use. If the status of the subcontractor subsequently changes HMRC will inform the contractor. If a subcontractor is not registered they will be unverified and the contractor must deduct 30% from the subcontractor’s invoices.

Subcontractors may apply to receive gross payment (which means no CIS is deducted from their invoices) and it is up to HMRC to decide whether to allow this. Larger contractors typically receive gross payment. Most smaller subcontractors will have 20% deducted.There are three tests to achieve gross status 1) Do work in the UK and run through a bank account; 2) Have a pretty clean record on timely tax and CIS submissions and payments and 3) Have the right level of sales which is £30k+ per owner or partner or director alternatively £200k+ total sales.

The contractor deducts CIS from the payment they make to their subcontractor at the rate specified by the verification process. This rate is deducted from labour costs plus any markup on materials plus personal expenses e.g. Mileage. CIS is not deducted from VAT or from the cost paid for materials, hire of equipment, pre-fabricating or manufacturing.

Here’s an example:

Labour charge £300Materials £100Total before VAT£400VAT @ 20% £80Invoice total (before CIS) £480 CIS @ 20% on labour£ (60)Total payable by contractor to subcontractor £420.

The CIS is deducted up to and including invoices paid by the 5th of the month and is then paid by the contractor to HMRC by the 19th of the month.

The sole trader subcontractor receives a credit with HMRC for the tax paid and can deduct this from any tax or NI due when they submit their tax return. That’s why subcontractors need to keep track of their CIS credit. Subcontractors who pay employees through PAYE can claim back their deducted CIS each month. Any registered company that does not use PAYE has to write to HMRC to obtain a refund.

The contractor sends the subcontractor a payment less the CIS. The payment plus CIS should equal the invoice total. The subcontractor records the full amount, including CIS, in their books and the invoice is considered fully paid.

Example: Materials £100, Labour £300, VAT £80, invoice total £480. Verification process says deduct CIS at 20%. So CIS would be 20% of £300 = £60. So the contractor would pay £60 CIS to HMRC and £420 to the subcontractor.

Reporting is based on the date that the payment is made.

Powered Now has the following features:

Powered Now allows contractors and subcontractors to enter all the extra details needed to calculate and record CIS and produce the necessary reports. Users need to:

For subcontractors, if they are sole traders or partnerships the information required is the NI number and UTR (Unique Tax Reference). Subcontractors who are limited liability companies must provide their company name, company registration number and UTR. Both must input their expected CIS deduction rate.

Powered Now allows subcontractors to issue CIS invoices with the amount of CIS that they estimate should be deducted noted on the invoice. This is based on setting a category for each line on the invoice which determines whether the line is subject to CIS or not. The subcontractor can amend the amount of estimated CIS and give an explanation before sending the invoice.

Powered Now allows contractors to input CIS invoices. Although the amount of CIS to be paid is estimated, the contractor can over-ride this as it is their responsibility to get it right. They decide how much to pay the subcontractor and how much CIS to pay HMRC.

Contractors record against their subcontractor invoices the amount they have paid to the subcontractor together with the CIS they have deducted. Subcontractors record against their sales invoices the amount that they have received from the contractor together with the amount of CIS that the contractor has deducted.

CIS invoices with no payments recorded will not be reported.

The records of the amounts paid along with the CIS deductions allows Powered Now to enable both contractors and subcontractors to comply with mandatory CIS reporting to HMRC and from contractors to their subcontractors.

To connect electronically, from the supplier or customer screen, the user looks up the other party and if they are a Powered Now user, requests to link to them.

The recipient of the request to link decides whether to accept the request or not, a bit like Facebook.

When both the subcontractor and contractor are Powered Now users and are linked:

All information sent must be approved by the receiver before it is allowed into their system.

Contractors must:

Reporting is done through the HMRC online portal. Powered Now may automate submission of reports in the future.

When subcontractors report their sales for tax purposes, the full invoice total (ex VAT) is included, ignoring the CIS deduction.

A report from Powered Now can be used to provide subcontractors with their total CIS credit to put on the tax return.

For full details visit regarding construction industry scheme and talk to your accountant.

gold-trade

UNDERSTAND THE CHARACTERISTICS OF XM GOLDBUILD UP IN A SHORT PERIOD OF TIME

On the official website of XM, Goldcurrent price, And you can check the trend of buying and selling gold of XM users.

You can check the gold trading trend on the XM official website below.

CHECK GOLD ON XM OFFICIAL WEBSITE.

It is displayed alongside other currencies at the top of the footer of the top page of the XM official link above, so please check it out. Also, you can check even if you don’t have an XM account.

First, let’s take a look at the benefits of trading gold with XM.

Gold tends to follow trends more easily than exchange rates.

Since the exchange is a currency in Forex, the main currency changes depending on the time of day, so the price movement immediately reverses.

So while trends can last for a long time, they tend to be temporary.

On the other hand, unlike currency exchange, gold is not a currency but a financial asset common to all countries.

The advantage is that the charts are relatively easy to analyze on XM as the trends continue in the same direction .

In the case of FX exchange, the rate does not change significantly throughout the year, but gold has overwhelmingly high volatility because the price fluctuates significantly throughout the year, and the fluctuation tends to occur many times a year. I have.

High volatility has a profit margin, and there are many opportunities to fluctuate, so there is an advantage that it is easy to earn with XM.

POINT Gold can move more than 200 pips in an hour, so gold is a very attractive stock for scalping Forex traders who can earn money in a short time.

Because gold is highly volatile, it tends to be easy to earn large profit margins in a short period of time.

It is compatible with scalping, which repeats transactions in a short period of time, and it is possible to accumulate profits in a short period of time.

The reason why many forex traders also deal with gold trading is that the scalping method in forex can be used as it is, and if it goes well with XM, you will accumulate profits faster.

POINT The fact that it is easy to make a profit in a short time means that you may suffer a large loss in an instant, so when trading gold with XM, make sure to cut losses and accumulate profits in the same way as FX trading. prize.

Now let’s take a closer look at the timing of gold price fluctuations, which is important to traders.

There are three time periods in which the price of gold moves:

In the early morning of Asian time, it starts to move slowly, but it may fluctuate greatly due to the previous day’s reaction.

When the European market starts, there is a strong tendency to start moving all at once, in contrast to the gradual movement up to that point, and there are cases where trend formation begins.

Due to the large number of US traders that characterize gold, the greatest volatility occurs during US indicator releases and US market openings.

When trading with gold, be sure to trade with the above three timings in mind.

Next, let’s take a closer look at the features of GOLD.

GOLD has the following four characteristics.

Prices rise in proportion to demand for industrial goods and electrical appliances When the world economy becomes unstable, it is chosen as a risk avoidance destination USD and gold are correlated Long-term price increases are likely

of industrial products and electrical appliancesproportional to demandrise in price

Since Gold is used in many industrial products and electrical appliances, the value of gold increases as the demand for industrial products and electrical appliances increases.

points In order to know the price rise of gold, it is recommended to be aware of the performance and stock indices of companies that handle industrial products and electrical appliances.

When the world economy becomes unstableas a risk avoidance destinationTo be elected

In the event that the world economy becomes unstable, which is called “geopolitical risk,” gold is chosen as an asset to avoid risk.

It is often called “emergency gold” that “anxiety in the global economy = increased demand for gold (risk off)” often holds true, so when trading gold, be aware of geopolitical risks in particular. is important.

Of course, it is important to be aware of the above risks even in XM FX trading, but in the case of gold, fluctuations are extremely rapid, so be especially aware.

USD and goldcorrelated

Gold trading correlation image

Gold is strongly positioned as a safe asset, so when the value of gold rises, the price of the risk-on currency, the US dollar, often falls.

Conversely, when USD/JPY is in an upward trend (the value of the US dollar is high and the value of the Japanese yen is low), the price of gold tends to fall.

Therefore, by checking the USD/JPY chart, you can make a judgment about gold’s movement.

long term price increaseProbability is high

Image of gold trading rising in the long term

The total amount of gold that has been excavated all over the world so far is actually 180,000 tons, equivalent to three competition pools, and the unmined Gold remaining in the ground is 53,000. It’s called a ton.

Countries with large gold reserves in 2020 are as follows.

Let’s take a look at the countries that actually produce a lot of gold.

The top 5 countries with the highest gold output in 2020 are as follows.

(Source: US Geological Survey - Mineral commodity summaries)

In addition, it is used as a material for industrial products and electrical appliances, and it is difficult to imagine that the number of electronic devices will decrease in the future, so it is thought that the demand for gold will continue to increase.

Since the remaining amount to be mined is limited, it is highly likely that the price of gold, which is likely to become scarcer in the future, will rise in the long term.

In addition, central banks and public institutions around the world are accumulating gold holdings as foreign currency reserve assets.

Total holdings in 2021 are inflated for the first time in 31 years since 1990.

In contrast to the increasing presence of gold in reserve assets, the presence of the dollar has been steadily declining .

In the 50 years since then President Nixon announced in 1971 that the exchange of gold and the dollar would be suspended, the value of the dollar has decreased to about 1/50th of its original value. The money supply has increased about 30 times in 50 years.

POINT President Nixon’s announcement to stop the exchange of gold and the dollar triggered a change in the exchange market from a fixed exchange rate system based on the dollar that can be exchanged for gold to a floating exchange rate system. (Nixon Shock)

Currently, there is a view that gold can withstand turmoil in the world’s financial markets because it is not directly connected to the economy of any country. Emerging market central banks with weaker reserves are turning to gold to protect their assets.

As mentioned above, the number of traders who trade gold on XM is increasing year by year, partly because gold is a stock with future potential and partly because it is easy to predict.

Compared to FX currency, gold trading can increase assets in an overwhelmingly short time, but conversely, even when you suffer a loss, gold trading is fast, so let’s trade carefully.

So far, we have looked at the “Gold trading” in detail.

Finally, let’s take a look at the “summary” about gold trading at XM.

At XM, it is possible to trade Gold with high leverage in the same way as FX.

Gold is also compatible with scalping, so it is recommended because there are many opportunities to make a big profit.

What you need to be careful about when trading with Gold is that the volatility is very high, so losses may increase at once.

Even though there is XM’s zero cut system, be sure to cut losses, manage risk properly, and trade gold with peace of mind.

However, for now gold trading still has the potential to generate greater profits with less capital than trading other Forex currencies.

Gold trading at XM is one of the most attractive trading styles.

If you have no experience trading gold at XM yet, let’s take this opportunity to start trading gold at XM.