Construction Industry Scheme (CIS)
Learn about the obligations and requirements associated with the Construction Industry Scheme (CIS) to ensure compliance and avoid penalties.
Who Needs to Register with CIS?
You must register as a contractor with the Construction Industry Scheme (CIS) if you pay subcontractors to do construction work or your business doesn’t do construction work but you usually spend more than £1 million a year on construction.
Rules and Regulations of CIS
Registration of CIS
You must register for CIS before you take on your first subcontractor.
Employ or Subcontract?
You must check if you should employ the person instead of subcontracting the work. You may get a penalty if they should be an employee instead.
HMRC Check
Check with HM Revenue and Customs (HMRC) that your subcontractors are registered with CIS.
Paying Subcontractors
When you pay subcontractors, you’ll usually need to make deductions from their payments and pay the money to HMRC. Deductions count as advance payments towards the subcontractor’s tax and National Insurance bill.
Filing
You’ll need to file monthly returns and keep full CIS records - you may get a penalty if you don’t.
Changes
You must let HMRC know about any changes to your business.
Subcontractor Registration
Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered.
They took care of my CIS registration, verification, and tax returns. Now I get the right deductions and keep more of what I earn.
James
Electrician
Services we Provide for Contractors & Subcontractors
Status
Determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly.
Verification
Verify you with HMRC on behalf of your contractor.
Management
Manage and organize your business records.
Preparation
Prepare your end of year self-assessment tax return and calculate your tax liability/ refund.
Tax Deduction Rates for Subcontractors
Explore the tax deduction rates applicable to subcontractors under the CIS scheme, with deductions typically at 20% (30% for unverified subcontractors) from the labour element of invoices, paid over to HMRC by contractors.
Expert CIS Affairs Management
Benefit from our expertise in managing CIS affairs, whether you're a contractor or subcontractor, ensuring compliance and efficiency in your dealings under the Construction Industry Scheme (CIS).
Streamline Your CIS Affairs Today!
Contact us for expert assistance in managing your contractor/subcontractor status and tax deductions under the CIS scheme