Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is a special scheme in the construction industry whereby contractors deduct money from a subcontractors payments and pass it to HMRC.

Contractors

As a contractor you must follow certain rules:

  • Register for CIS before you pay your first subcontractor
  • Check if you should employ instead of subcontract the person
  • Check that subcontractors are registered for CIS with HMRC
  • Make deduction from the subcontractor and pay to HMRC
  • File the monthly CIS return and keep full CIS records
  • Let HMRC know about any changes to your business

Brash & Co can assist contractors with:

  • Registering with HMRC as a contractor
  • Verifying your subcontractors
  • Calculate CIS deductions and subcontractor payments
  • Prepare deduction statements for subcontractors
  • File monthly CIS return with HMRC

Subcontractors

As a subcontractor you should register for the scheme if you work for a contractor and you are either self-employed or the owner of a limited company.

Under CIS a contractor must make a deduction from your payments and pass it on to HMRC. The deduction counts as an advance payment towards your tax and National Insurance bill.

If you do not register for the scheme the amount a contractor deducts will be higher than the amount they deduct if you were registered.

Brash & Co can assist subcontractors with:

  • Registering you for the CIS scheme for reduced rate deductions
  • Help manage and organise your business records
  • Calculation of taxable profits or losses
  • Calculation of tax liability or repayment
  • Preparation of your self assessment tax return including submission to HMRC

Require more information?

If you would like more information or would like to speak to us direct then call us on 01704 551889. Or if you would prefer, ask us a question online.

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Brash & Co Accountants Ltd
Head office: Birkdale Business Centre, Weld Parade, Southport, Merseyside, PR8 2DT. Telephone 01704 551889
Southern office: Unit 93 Trident Court, 1 Oakcroft Road, Chessington, Surrey, KT9 1BD. Telephone 0203 475 3944

Registered in England & Wales. Company number: 06781340

T: 0844 579 1435 , F: 01704 337177, E: info@brashco-online.com, S: brashco

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