Construction Industry Scheme Services

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

Contractors
As a contractor, you are required to meet specific obligations under the scheme, including registering with HMR&C, checking whether or not your subcontractors are registered with HMR&C, deducting tax, paying subcontractors and submitting monthly statements confirming these payments.

We provide the following services for contractors:

  • Register you as a contractor with HMR&C
  • Verify your subcontractors with HMR&C
  • Ensure you correctly pay your subcontractors within the scheme
  • Supply deduction statements to the subcontractors
  • Supply HMR&C with monthly returns and keep your records in order

Subcontractors
As a subcontractor, your main obligation is to register with HMR&C. You must also keep HMR&C informed of any changes to your business, such as changes to your business name, business address and other relevant information.

We provide the following services for subcontractors:

  • Determine your status as either a subcontractor or an employee (or both) and register you with HMR&C accordingly
  • Verify you with HMR&C on behalf of your contractor
  • Organise and manage your business records
  • Prepare your end of year self assessment tax return and calculate your tax liability/refund

Every 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, then the contractor will need to operate a PAYE system.

If you are self-employed, then HMR&C will register you as a subcontractor under the CIS scheme. They will then set you up to receive payments ‘under deduction’. This means contractors must make a deduction of 20% (30% for unverified subcontractors) from the labour element of your invoices and pay it over to HMR&C.

Whether you are a contractor or a subcontractor, we will be more than happy to help you to keep your CIS affairs in order. Please do not hesitate to contact us if you have any questions or require any further information.

If you would like further information regarding this service, please don’t hesitate to contact us.