The Construction Industry Scheme (CIS)The Construction Industry Scheme (CIS) sets out
the special tax rules for subcontractors who work in the construction industry and how payments must be handled by contractors.
As a contractor, you are required to meet specific obligations under the scheme,
including registering with HM Revenue & Customs (HMRC), checking whether your subcontractors are registered with HMRC,
paying subcontractors, deducting tax and submitting monthly statements confirming these payments. Services we provide for contractors:
· Register you with HMRC as a contractor
Verify your subcontractors
· Ensure you pay your subcontractors correctly within the scheme
Supply deduction statements
to the subcontractors
· Keep your records in good order and supply HMRC with monthly returns
Make sure you do not
incur penalties by failing to submit your monthly returns to HMRC. By making sure we are always up to date with any
changes to the CIS regulations we can notify our clients quickly of any changes that may affect them.
If you are a subcontractor, your main obligation is to register with
HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business
name, business partners and other relevant information.
Services we provide for subcontractors:
· Determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly
Verify you with HMRC
on behalf of your contractor
· Manage and organise your business records
Prepare your end of
year self assessment tax return and calculate your tax liability/ refund where applicable
Any contractor that you work for must determine whether or not you are to be treated as employed or self-employed
for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a
PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
If you are self-employed, HMRC will register
you as a subcontractor under the CIS scheme and they will set you up to receive payments 'under deduction'. This means
contractors must make a deduction of tax at 20 per cent (30 per cent for unverified subcontractors) from the labour element
of your invoices and pay it over to HMRC.
Whether you are the contractor or the sub-contractor, we can help you keep your CIS affairs in order.