CIS

The construction industry scheme (CIS) is HMRC’s solution to the problem of cash-in-hand payments in the building industry. It requires contractors to deduct a percentage from payments to subcontractors and pay that sum directly to HMRC. They also have to complete regular CIS returns.

Through our CIS service, we can take care of all those duties on behalf of contractors, making sure they stay compliant without getting bogged down in admin. From CIS calculations to statements to filing with HMRC, we look after it all.

Subcontractors have duties around CIS, too. First, they have to register for CIS, to ensure the right amount of tax is withheld – 20% rather than the 30% for unregistered subcontractors. Then they have to keep decent records through bookkeeping, so they have a clear picture of how much tax has been withheld throughout the year. Finally, they need to complete a tax return. This is when any CIS you’ve overpaid can be reclaimed, often resulting in a tax rebate or refund. Our team can help with all of that, from setting you up on Xero or QuickBooks to managing your tax return.

As a subcontractor, you might also be eligible to register for gross status, which would mean no taxes being withheld. Appealing as that might sound in terms of cashflow, it also means you need to be canny about planning for your tax bill at the end of the year.

Talk to us to run the numbers and work out which approach is best for you, or if you have any other questions or concerns about your CIS situation.