CIS

Construction Industry Scheme Advice (CIS)

Due to its complexity, many contractors and subcontractors come to us for Construction Industry Scheme advice. Although the scheme can be challenging to get to grips with initially, it can be beneficial for both contractors and subcontractors in the long term as it reduces their overall tax bill.

Our team are experts when it comes to assisting contractors and subcontractors understand the CIS and we have helped thousands of people working in the construction industry register for the scheme.

Construction Industry Scheme advice – What is the CIS?

The CIS is a scheme that was implemented by the government in 1994 to improve the level of tax compliance within the construction industry. Under the CIS, contractors deduct a mandatory tax of between 20-30% from the subcontractor’s earnings. The deducted money is then paid directly to HMRC and is used as advanced payments towards the subcontractor’s annual national insurance and tax. This means that the subcontractor’s tax liability is spread across their financial year instead of being paid in total at the end of their tax year.

What is classed as ‘construction work?

In most cases, any structural or decorative work carried out on a building is classed as construction work. This includes:

  • Preparing the site such as laying down foundations and providing access works
  • Demolishing or dismantling structures
  • Building work
  • Repairing, decorating or altering a structure
  • Installing systems for heating, lighting, power, water and ventilation
  • Cleaning the inside of buildings once initial construction work has been completed

Who has to register for the CIS?

Legally, any contractors that hire subcontractors to complete any construction work must register for the Construction Industry Scheme. Subcontractors, on the other hand, are not legally required to register with the CIS. However, if a subcontractor chooses not to register for the scheme, the deductions from their earnings are taken at the higher rate of 30% opposed to the lower rate of 20%.

Construction Industry Scheme advice – What is the CIS?

The CIS is a scheme that was implemented by the government in 1994 to improve the level of tax compliance within the construction industry. Under the CIS, contractors deduct a mandatory tax of between 20-30% from the subcontractor’s earnings. The deducted money is then paid directly to HMRC and is used as advanced payments towards the subcontractor’s annual national insurance and tax. This means that the subcontractor’s tax liability is spread across their financial year instead of being paid in total at the end of their tax year.

Our Construction Industry Scheme advice service

Our specialist CIS advice team have over 15 years of experience providing specialist advice and support to contractors and subcontractors working in construction. We are dedicated to helping you stay compliant with the latest CIS regulations.

Some of the areas our professional team can assist you with are:

Registering you as a contractor with HMRC

Verify subcontractors with HMRC

Make sure that the correct amount of tax is deducted from payments to subcontractors

Prepare and send off CIS returns

Reclaim CIS deductions on behalf of subcontractors

Complete and file Personal Tax Returns for self-employed contractors

CIS record keeping and issuing subcontractor statements

Contact one of our professional team members today

Whether you have a selection of questions about our Construction Industry Scheme advice service, or whether you are interested in finding out more about how our team can help you, please feel free to get in touch with our team.

You can contact us by calling us on 07932 809 774 or emailing us at contact@vipuljogia.com and we will happily answer any of your questions and provide you with further information about what we do.