CIS
The Construction Industry Scheme (CIS) was introduced by Inland Revenue to ensure correct payment of tax by contractors and subcontractors working in the construction Industry. It can apply to any type of business (i.e. sole trader / partnership / Limited Company), and any type of work directly or indirectly involved with construction such as:
Contractors – if you are a contractor you need to register with HMRC and ensure that you follow certain rules to make sure your subcontractors are being paid correctly. We would be happy to work with you to achieve this, or to manage your CIS for you.
Subcontractors – if you are a subcontractor working in at least one of the above trades it is in your best interests to register with HMRC under CIS. If you are not registered the contractor will have to make a higher deduction from your payments of 30% (current rate for those registered in the scheme is 20%). You will need to ensure your invoices to the contractor are correct, and that deductions are made correctly (not all items on your invoice will be subject to deductions). We would be happy to work with you to ensure CIS rules are adhered to, and to make sure you have paid the right amount of tax at the end of the year.
Please call us for your FREE no obligation initial consultation (up to 1 hour).
The Construction Industry Scheme (CIS) was introduced by Inland Revenue to ensure correct payment of tax by contractors and subcontractors working in the construction Industry. It can apply to any type of business (i.e. sole trader / partnership / Limited Company), and any type of work directly or indirectly involved with construction such as:
- site preparation
- general construction - bricklaying, roofing, plastering and so on
- alterations and extensions
- repairs and refurbishment
- decorating
- dismantling work
- demolition
Contractors – if you are a contractor you need to register with HMRC and ensure that you follow certain rules to make sure your subcontractors are being paid correctly. We would be happy to work with you to achieve this, or to manage your CIS for you.
Subcontractors – if you are a subcontractor working in at least one of the above trades it is in your best interests to register with HMRC under CIS. If you are not registered the contractor will have to make a higher deduction from your payments of 30% (current rate for those registered in the scheme is 20%). You will need to ensure your invoices to the contractor are correct, and that deductions are made correctly (not all items on your invoice will be subject to deductions). We would be happy to work with you to ensure CIS rules are adhered to, and to make sure you have paid the right amount of tax at the end of the year.
Please call us for your FREE no obligation initial consultation (up to 1 hour).