The Construction Industry Scheme (CIS) sets out the special tax rules for subcontractors who work in the construction industry and how payments must be handled by contractors.
Whether you are a contractor or subcontractor, here at Manchester accountants, The Accountancy People, we can help make sure you abide by CIS regulations, avoiding any unwelcome penalties.
Contractors are required to meet specific obligations under the scheme:
- Registering with HMRC
- Checking subcontractors are registered with HMRC
- Deducting the right amount of tax from subcontractors pay
- Submitting monthly statements confirming these payments
- Paying HMRC
Subcontractors are also required to register with HMRC and have to be verified by their contractors. Each year the subcontractor has to file a self-assessment tax return and, depending on their income and expenses, will have either overpaid or underpaid tax.
Whether you’re a contractor or subcontractor, we can take the hassle away from worrying about monthly deadlines and whether the correct amount of tax is being deducted.