The construction industry scheme (CIS) is HMRC’s answer to the problem of cash-in-hand payments in the building industry, requiring contractors to deduct a portion of payments they give to subcontratcors, which is then paid to HMRC. They also have to complete regular CIS returns.
With our CIS services, we can make sure you stay compliant with your duties and avoid getting bogged down in the admin work. From CIS calulations and statements to filing with HMRC, we can take care of the whole process on your behalf.
Subcontractors have their own duties with CIS, too. First, they have to register for the scheme to ensure the correct amount of tax is withheld – 20% rather than the 30% for unregistered subcontractors. They then have to keep up-to-date records so they know how much tax has been withheld throughout the year. Finally, they need to complete a tax return, which is when any CIS you have overpaid can be reclaimed as a tax rebate or refund.
As a subcontractor, you may also be able to register for gross status, which means that no taxes would be withheld. While that might sound good for your cashflow, you need to build a plan to pay your tax bill at the end of the year.
Talk to us to find out which approach is best for you, or if you have any other queries about CIS.
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