The Construction Industry Scheme (CIS) is a set of special rules for handling payments for construction work that contractors make to subcontractors. The scheme covers all ‘construction operations’ – construction work – carried out in the UK, as well as some other related work. Under the Construction Industry Scheme (CIS), Contractor deducts money from a subcontractor's payments and passes it on to HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
In case, your business is involved with construction operations then it can operate as a Contractor or as a Subcontractor – or as both. The terms Contractor and Subcontractor have special meanings under CIS. Under CIS, you’re a Contractor where you either pay Subcontractors for construction work OR where your business doesn’t do construction work but you spend an average of more than £1 million a year on construction in any 3-year period On the other hand, you’re a Subcontractor, if you do construction work for a contractor.
You need to note that while it is mandatory for Contractors to register for the scheme, it is not so for Sub-Contractors. However, deductions are taken from their payments at a higher rate if they’re not registered.
The CIS can apply to all types of businesses that work in the construction industry in the UK. This includes:
1.Self-employed individuals working as sole traders.
4. Limited liability partnerships (LLPs).
In addition to traditional construction businesses like builders, the scheme can also apply to businesses like:
1.Labour agencies and staff bureau.
2. Gang masters - or gang leaders.
3. Property developers.
CIS deductions rates are
1. 0%, if subcontractors have gross payment status.
2. 20% for registered subcontractors.
3. 30% for unregistered subcontractors.
GLP Accountancy has vast experience specialising in Building and Construction Sector and is well-positioned to provide rich quality customised professional advice and guidance with regards to gross payment status, so there won't be any CIS deductions from contractors. Services we provide include:
1.Your Registration with HMRC as a contractor.
2. Verification of your subcontractors with HMRC.
3.Assisting you in paying your subcontractors correctly within the scheme,
4. Supplying deduction statements to the subcontractors.
5.Keeping your records in good order and supplying HMRC with monthly returns.
Our immense expertise and knowledge makes us well-equipped to deal with your needs efficiently. In addition, we stay up-to-date with any changes to the CIS regulations. This allows us to notify you quickly of any changes that may affect you. Working with you, we help optimize your performance through advice and guidance through the maze of regulations imposed on the industry as well as minimises your compliance costs, for a successful future. In case, you still have some questions in mind, feel free to contact any of the members of our team at email: firstname.lastname@example.org OR call us at 079 4760 5554
1.Private and confidential tax advice
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Tax and Accounting are time consuming and there are so many rules and regulations. But as a business owner you can’t get away from these and they are simply tasks that need to be done and done well.
GLP Accountancy with its knowledge and expertise in all areas of Accounting & Tax is more than happy to take on the bean counting and number crunching for you, leaving you to concentrate on running and developing your business, saving you time and money. . Working with GLP Accountancy, you can expect prompt, friendly & professional quality services, customised to your requirements and all of it at extremely competitive rates
• Tax and tax planning including VAT, Corporation Tax, Self-Assessment and other tax issues
• Preparation of financial statements in UK GAAP and IFRS if required
• Pay-roll Solutions of FPS, EPS, pay-roll end, P11D etc
• Companies house compliance of submission of annual returns and annual accounts.
• Regulation and Compliance
• Tax and Business Advice and Accounts Support
,Ultimately we will take care of everything, allowing you to focus on running and developing your business – saving you time and money.
We offer a cost-effective service delivered in a manner that makes sense to our clients and provides added value to them. We deliver our clients a carefully chosen combination of unique benefits and because of our operating structure we can reduce our costs and pass the savings on to you.
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