Contractors are required to deduct money from payments to subcontractors for work carried out in the construction industry, and pass this across to HMRC as advanced tax payments as part of the Construction Industry Scheme (CIS).
What do you need to for CIS do as a contractor?
- Register for CIS with HMRC (https://www.gov.uk/what-you-must-do-as-a-cis-contractor/how-to-register)
- Verify the status of your subcontractors with HMRC
- Deduct the right amount of tax from subcontractors
- File monthly returns to HMRC
- Keep full CIS records
- Pay all deductions to HMRC
- Provide your subcontractors with a monthly statement of deductions
What you need to do for CIS as a subcontractor?
- You should register (https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/how-to-register) for CIS if you are self-employed, trade through a limited company or are a partner in a partnership and work for a contractor in the construction industry.
- The contractor will then deduct tax from you at 20% (30% if you are not registered for the scheme) and pay these amounts to HMRC.
- If you are self-employed the amounts deducted will be included in your self-assessment tax return and offset against the tax and national insurance you owe for the year.
- If you are a limited company you will need to claim these amounts back through your company’s monthly payroll.
How can we help with your CIS?
Prepare your monthly CIS returns
Prepare your payroll and include any CIS suffered
Prepare your self-assessment tax return
Calculate amounts payable to HMRC and provide details on how and when to pay
Expert support and advice