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.
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 HMRC
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
As 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 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 HMRC accordingly
Verify you with HMRC 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 HMRC 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 HMRC.
Whether you are a contractor or a subcontractor, we will be more than happy to help you to keep your CIS affairs in order.
Our prices start at £250 + VAT for the completion of a subcontractor’s self assessment tax return.
If you would like further information regarding this service, please don’t hesitate to contact us.
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