The Utr Is The New Cis

Now, you may be seated there wondering how you can get you CIS number

, or you have looked at your tax forms and you have realize that for some time now, the number on your tax form is a UTR number when you know very well that your friends had talked for a long time about the CIS number. So, what exactly is a UTR number, and how doe sit differ from a CIS number?

The first thing that you ought to know is to understand the fact that since the year 2007, the HMRC has been able to introduce and to even implement the UTR as the new number that will replace the CIS. Now, in full, the UTR number refers to the Unique Tax Reference, while the CS refers to the Construction Industry Scheme.

The main industry between the new and the old is the fact that the new one has been specifically designed to make it easier for people to pay their taxes, while at the same time increase the cost of tax evasion. For example, if you happen to delay In submitting your tax returns to the HMRC, you will realize that there are automatic penalties that will accrue. It is not really something that you are going to debate about or get a reprieve over.

If you happen to employ any new subcontractors, the law now does require you to submit their names to the HMRC so that they can handle their tax situation differently. In doing this, you will be required to state clearly whether the payments that you will be making to them are net of taxes or not. While working with sub-contactors, you will not really be asked to file your CIS annual returns any more. However, the point is that you will need to notify the HMRC about any payments that you have made to the sub-contactors, and you must ensure that the submissions to the tax-collecting agency are don within 14 days of making the said payments.

It is important to take note of the act that the UTR number and the CIS number that were issued before the April 2007 date, were related to some extent. However, for you to get a UTR if at all you are self-employed, you will need to notify the HMRC that you are self-employed, before you are allowed to get your UTR number. Without this, the process of getting a UTR number can prove to be quite difficult.

by: David de Souza

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