Construction Industry Tax Scheme
The Construction Industry Tax Scheme (CIS) covers all construction work carried out in the United Kingdom. The Construction Industry Tax Scheme sets out the special tax rules for subcontractors who work in the construction industry and how payments must be handled by contractors.
Evans & Co Accountants keep up to date with any and all changes to the Construction Industry Tax Scheme regulations, allowing us to quickly notify our clients of any changes that may affect them.
Under the Construction Industry Tax Scheme you are required to meet specific obligations. These include registering with HM Revenue and Customs (HMRC), making sure your subcontractors are registered with HMRC, paying subcontractors, deducting tax and submitting monthly statements confirming these payments.
CIS Services we can provide for contractors:
Register you with HM Revenue and Customs as a contractor.
Verify your subcontractors with HM Revenue and Customs.
Ensure you pay your subcontractors correctly within the Construction Industry Tax Scheme.
Supply deduction statements to the subcontractors
Keep your records in good order and supply HM Revenue and Customs with monthly returns
Your main obligation as a Subcontractor is to register with HMRC. You must also make sure that HMRC are informed of any changes to your Business such as Business address, Business name, Business partners and other relevant information.
CIS Services we can provide for subcontractors:
Registering you with HMRC
Verify you with HMRC on behalf of your contractor
Manage and organise your business records
Prepare your end of year self assessment tax return (includes calculating your tax liability/ refund where applicable)
All Contractors must determine whether or not their subcontractors are to be treated as employed or self-employed for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
Whether you are the contractor or the sub-contractor, Evans & Co Accountants, Barnstaple can help you keep all your CIS affairs in order.
If you would like detailed information on The Construction Industry Tax Scheme (CIS) visit the HMRC website.