CIS
Our expert CIS Accountants help you with CIS Accountancy and Tax Returns. Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments, which is then passed onto HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
Points to note
→ Contractors must register for the scheme.
→ Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they are not registered.
→ Subcontractors do not have to register, but deductions are taken from their payments at a higher rate if they are not registered.
Who is it for?
→ Subcontractors or those deploying services of subcontractors for construction works are liable for tax assessment under the Construction Industry Scheme (CIS). As a subcontractor one needs to be verified by the principal contractor.
→ It will apply to you as well even if your core activities are not construction, but you spend a good deal on construction annually. For example, CIS may apply also to non-construction companies such as housing associations, local authorities etc. spending more than £1 million a year on construction operations.
→ This scheme also applies to labour agencies, property developers and gang leaders.
→ It will apply to you as well even if your core activities are not construction, but you spend a good deal on construction annually. For example, CIS may apply also to non-construction companies such as housing associations, local authorities etc. spending more than £1 million a year on construction operations.
→ This scheme also applies to labour agencies, property developers and gang leaders.
