If you or your limited company undertake a construction work to a permanent or temporary building or structure or civil engineering work like roads and bridges, then you’ll have to register for Construction Industry Scheme (CIS).
For the purpose of CIS, construction work includes:
• preparing the site, eg laying foundations and providing access works
• demolition and dismantling
• building work
• alterations, repairs and decorating
• installing systems for heating, lighting, power, water and ventilation
• cleaning the inside of buildings after construction work
If you or your company engage sub-contractors to perform any construction work listed above, you’ll have to register as a CIS contractor. Before making any payment to sub-contractors, you’ll have to verify their registration status and decide a 0%, 20% or 30% deduction to make from their pay. Deductions made then have to be reported in CIS returns and provide CIS deduction certificates for your sub-contractors. This needs to be done every month, and contractors who fail to comply can face hefty fines. Charterhouse can help you with the registration process if necessary and ongoing compliance for a very competitive fee in the industry.
If you are a sub-contractor who’s performing construction work, you’ll have to register with HMRC to be eligible for 20% tax deduction or no tax deduction at all (gross status). Under the CIS scheme, contractors deduct money from a subcontractor’s payments and pass it to HMRC, which serve as advance payments towards the subcontractor’s tax and national insurance. Following to the end of every tax year, you’ll have to calculate the actual tax due to HMRC and claim back any overpaid tax. Our specialist team of Chartered Accountants can ensure that the calculations are made accurately and transparently for your review and submitting with HMRC on your behalf.
We provide an extensive range of services to cover all your CIS requirements for example;
• To register you as a subcontractor/contractor (or both).
• To help you with the application of ‘Gross Payment Status’.
• To prepare CIS returns for contractors.
• To prepare the tax returns for subcontractors.
• To help reclaim their CIS deductions.
• To keep you up to date with any changes to the scheme.
• Ensure you pay the correct amount of tax and reclaim the right amount of tax.