The CIS sets out the guidelines as to how payment to subcontractors should be handled by contractors in the construction industry.
Our team can manage your monthly returns and records under the CIS rules – leave all your CIS worries to us and you just need to concentrate on your core business actions. That’s a promise!
Our CIS Services: -
- Registration & Planning advice
- Monthly CIS Returns
- Offset CIS deductions
- Monthly subcontractor payment documents
The rules under this scheme apply solely to contractors and subcontractors in the mainstream construction domain. However, businesses whose annual spend goes to construction work also fall under this domain.
What you must do as a CIS contractor?
As a contractor, you need to enroll yourself under the scheme, ensure whether your subcontractors are registered with HMRC, paying your subcontractors and putting forward the monthly CIS Returns.
Register yourself as a contractor if:
- You pay subcontractors for construction work
- Your business is not directly involved in construction work but you spend well above than £1 million a year on construction work in a 3-year period.
You may be a sole trader or run a partnership or own a limited company.
We’ll take care of all the rules you must follow being a contractor like filing monthly returns, and safe keeping CIS records, making deductions from subcontractor’s payments for HMRC, business changes, etc.
What you must do as a CIS subcontractor?
As a subcontractor, it is a must for you to register with HM Revenues & Customs (HMRC). You can then get your tax slashed from your earnings as per the rate on your status.
You need to register for CIS if you work for a contractor and is:
- Self-employed
- Limited Company owner
- Runs a partnership business
A contractor makes 20% cut from your payments and passes it to HM Revenue and Customs (HMRC). These pay cuts count as advance payments for your tax and National Insurance bill.
In case you do not register for CIS, contractors must cut 30% from your payments. You can also apply for Gross Payment Status if you don’t feel like making advance payments.
Work Area Covered Under CIS
CIS pans to major construction work for:
- A temporary or permanent structure
- Civil works like road & bridge construction
CIS – Construction work includes:
- Site prep like foundation laying and giving access works
- Demolition and Dismantling
- Building related work
- Repairs, alterations, and decoration
- System installation for heating, lighting, power, water and ventilation
- Cleaning work inside the buildings after construction work
Exceptions – You don’t need to register if you belong to:
- Architecture and surveying
- Scaffolding work
- Carpet fitting
- Materials used in construction industry like plant and machinery
- Material delivery
Our CIS Services for contractors:
- Advice on Planning & Registration with HMRC
- Online filing of monthly CIS Returns
- Coupling or balancing CIS deductions with monthly PAYE cuts payable
- Verify your subcontractors with HMRC
- Producing monthly payment certificates of subcontractors
Our CIS Services for subcontractors:
- Identify your status as an employee or a subcontractor & register you with HMRC
- Administer and sort your business records
- Ready your end year self assessment tax return and estimate your tax liability/ refund as applicable
Let us take care of the registration & rules, monthly returns and records. Enjoy the peace of mind with us!