The Construction Industry Scheme (CIS) sets out the special tax rules for subcontractors who work in the construction industry and how payments must be handled by contractors.

  • Contractors

As a contractor, you are required to meet specific obligations under the scheme, including registering with HMRC, checking whether your subcontractors are registered with HMRC, paying subcontractors, deducting tax and submitting monthly statements confirming these payments.

  • Subcontractors

If you are a sub-contractor, your main obligation is to register with HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business name, business partners and other relevant information.

  • Services we provide for contractors:

    1. Register you with HM Revenue & Customs (HMRC) as a contractor
    2. Verify your subcontractors with HMRC
    3. Ensure you pay your subcontractors correctly within the scheme
    4. Supply deduction statements to the subcontractors
    5. Keep your records in good order and supply HMRC with monthly returns

    Make sure you do not incur penalties by failing to submit your monthly returns to HMRC. TaxAssist Accountants work with numerous contractors and are equipped to deal with your needs efficiently. By making sure we are always up to date with any changes to the CIS regulations we can notify our clients quickly of any changes that may affect them.

    • Services we provide for Subcontractors:

      1. Determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly
      2. Verify you with HMRC on behalf of your contractor
      3. Manage and organise your business records
      4. Prepare your end of year self assessment tax return and calculate your tax liability/ refund where applicable

      Any contractor that you work for must determine whether or not you 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.

      If you are self-employed, HMRC will register you as a sub-contractor under the CIS scheme and they will set you up to receive payments 'under deduction'. This means contractors must make a deduction of tax at 20% (30% for unverified subcontractors) from the labour element of your invoices and pay it over to HMRC.

      Whether you are the contractor or the sub-contractor, your local Direct Assist Accountantants can help you keep your CIS affairs in order.

The above are just some of the services our Bookkeeping Managers can help you with, for a more detailed discussion please contact us today on 0203 633 2018 or complete our online contact form. We are here to help you start and grow your business and take the burden off you so you can get on with running your company.