The Construction Industry Scheme (CIS)
Services we provide for contractors:
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.
|Register you with HMRC as a contractor|
|Verify your subcontractors with HMRC|
|Ensure you pay your subcontractors correctly within the scheme|
|Supply deduction statements to the subcontractors|
|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.
Sagoo & Co. Chartered 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.
Contractors: As a contractor, you are required to meet specific obligations under the scheme, including registering with HM Revenue and Customs (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 subcontractor, 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 subcontractors:
|Determine your status as a subcontractor or employee, (or both) and register you with HMRC accordingly|
|Verify you with HMRC on behalf of your contractor|
|Manage and organise your business records|
|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 subcontractor 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 per cent (30 per cent 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 Sagoo & Co. Chartered Accountant can help you keep your CIS affairs in order.
Call us today 020 8993 1867 or drop us an email and we will call you back - firstname.lastname@example.org.