The Construction Industry Scheme is a HMRC system of disclosing payments made by contractors to subcontractors and dealing with associated tax deductions.
CIS applies to all payments made by contractors to subcontractors working under a construction contract. There are substantial penalties for non-compliance and it is therefore important to take proper advice if you are a contractor and are unsure whether you are operating correctly within the scheme.
Under the CIS contractors deduct money from a subcontractor’s payments and pass it directly to HM Revenue and Customs (HMRC). This money then counts as an advance payment towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme and it is advisable that subcontractors also register as if they don’t, then deductions are taken at a higher rate. We are happy to open contractor schemes with HMRC to allow contractors to pay their subcontractors.
What do we do to help you?
We prepare and submit the monthly returns which show what payments have been made to subcontractors;
We produce the necessary payment slips to be given by the contractor to their subcontractors;
We verify new subcontractors with HMRC on the contractor’s behalf;
We advise how much CIS tax needs to be deducted and paid to HMRC each month.