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Construction Industry Scheme

The Construction Industry Scheme (CIS) is a special set of rules for handling payments to subcontractors for construction work by contractors in the construction industry.
If your business is involved in construction then it might be a contractor, a subcontractor or both.

A CIS Contractor can be a company, partnership or self-employed individual.

A CIS subcontractor is any self-employed individual, sole trader, partnership or company that does construction work for contractors, including staff agencies and personnel bureaux that supply (not introduce) workers to a contractor.

 

Contractors need to register for CIS before engaging a subcontractor whilst subcontractors need to register before starting work for a contractor.

Contractors must

  • verify every subcontractor with HMRC
  • pay each subcontractor making the correct deduction
  • pay over deductions to HMRC
  • give each subcontractor a deduction statement
  • submit monthly returns to HMRC
  • keep proper and adequate records

Subcontractors must

  • obtain a deduction statement from the contractor
  • retain the deduction statement
  • keep proper and adequate records

Our firm provides a comprehensive CIS service for contractors and subcontractors.

For contractors our services include

  • preparing the monthly deduction statements for each subcontractor
  • submitting the monthly returns to HMRC
  • filing the monthly Employer Payment Summary
  • applying for CIS refund after the tax year end

For subcontractors we

  • prepare your annual income statement
  • calculate your tax refund
  • file your self assessment tax return

So don’t delay, contact us now to request more information or arrange a meeting.

For more information about trading styles visit our pages on sole traders, partnerships and limited companies.

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