Construction industry scheme

The Construction sector is a sector which has unique accountancy and tax requirements, which may often seem confusing and difficult to understand. We have specialised construction accountants who will ensure you follow the set of rules which apply to the handling of payments made by contractors to subcontractors for construction work.

How the Construction Industry Scheme (CIS) Works?

Contractors include construction companies, building firms as well as government departments and local authorities. They should register as HMRC as a CIS contractor. If you work for a contractor either being self-employed or a company (a subcontractor), you should register with CIS to avoid an extra 10% of tax deductions. If you are a subcontractor that is not registered with HMRC, contractors must make a tax deduction of 30% (instead of 20% for verified contractors). We will answer any queries you may have regarding the CIS scheme and assist you in complying with the regulations.

Monthly Returns

As a contractor, you are required to make an online monthly return to HMRC. In this, you declare whether your subcontractors are employed or self-employed. This can be confusing and time-consuming which is why we use our expert advice to help you understand what it means to be employed or self-employed. Included in these monthly returns is also information regarding any payments made to all subcontractors and any deductions of tax taken from these payments.

 

What do our services include?

  • Determining you as a subcontractor or employee
  • Registering you with HMRC as a contractor, subcontractor or both
  • Ensuring you pay your subcontractors correctly in line with the scheme
  • Making sure you deduct the correct amount of tax deductions from payments made to subcontractors
  • Minimising the risk of HMRC enquiries through the submission of accurate monthly returns
  • Assisting you with Self-Assessment tax returns you are required to submit

Key points

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