You’ve heard of it
If you’re familiar with the construction sector you have probably heard of the Construction Industry Scheme (CIS).
It’s a tax scheme that applies to all construction operations carried out in the UK where a contractor hires the services of a subcontractor.
But what is it?
The scheme sets out how contractors must handle payments to their subcontractors, how both parties are taxed, and how the transactions are reported to HMRC each month.
Contractors are required to register for CIS and subcontractors are advised to do the same. Subcontractors that choose not to register are taxed at a higher rate than if they had registered.
Rough on contractors
There’s no getting round the fact that the scheme places the heftiest demands on contractors and that things can get quite complicated.
Contractors must judge the applicability of the scheme against every use of a subcontractor and periodically review the employment status of their subcontractors.
They are responsible for deducting tax from subcontractors and passing it onto HMRC every month.
There are also special rules for dealing with VAT.
“Subcontractors with gross payment status aren’t subject to CIS deductions, and instead pay their taxes at the end of the year”
Together – Proactive – Impactful
Our Service
At Taxplain we have years of experience supporting businesses in the construction industry.
So whether you’re a contactor or subcontractor, we’ll guide you through the scheme from registration to year-end tax reconciliations and all the administration in between.
We’ll ensure that you remain compliant at every stage, that the information shared between contractor and subcontractor is complete, accurate and timely, and that deductions are never more than they should be.
The scheme is a constant, everyday function and so is our support.
We’ll provide ongoing advice on what construction jobs fall within or outside the scheme and how to handle the Domestic Reverse Charge VAT.
Our helpful calculators will enable you to quickly work out billing details, deductions and payments.
And we’ll also assist you with employment status assessments and disputes.
What’s included?
Together – Proactive – Impactful
Why Choose Us?
Together – Proactive – Impactful
