R A Lister Ltd

Chartered Accountants in Wakefield, Yorkshire

Phone Number: 01924 291 388

CIS Subcontractors - Construction Industry Schemes Advice

Construction Industry Schemes (CIS) is responsible for setting out tax rules especially for subcontractors working in construction industry as well as the way contractors should handle payments. Are the expenses you claim against the CIS income you earn the correct ones in compliance with HMRC requirements? Our company will advise on which expenses you should claim then complete the Tax Return so as to have any due tax refunded. 

Some of the services which we offer to contractors include;

  • Signing up with HRMC as contractor
  • Verification of subcontractors tied to you with HRMC
  • Ensuring the subcontractors are paid correctly as per the scheme
  • Supply subcontractors with deduction statements
  • Supply monthly returns to HRMC and keep good records
  • Ensure that no penalties are incurred for failure to submit to HRMC the monthly returns

row of hardhats for contractors

Our team of professional accountants are well-equipped to handle all aspects your accounting needs. We continuously update ourselves of any change which might have been imposed on the CIS regulations and pass the same changes to the clients immediately. 

Contractors

All contractors are required to adhere to set regulations under CIS. Such include registration with HRMC, submission of monthly statements, deduction of tax, paying of tax and confirming if the subcontractors under you are HRMC registered. 

Subcontractors

The major role of subcontractors is registering with HRMC. Also, they should let HRMC know of any changes which happens to the business like business partners, business name, business address as well as any other information which is relevant. 

trowel for laying foundation

Services our company offers to subcontractors include: 

  • Verification on behalf of the contractor whether you are registered with HRMC
  • Determining the status of the subcontractor then register that subcontractor as required with HRMC
  • Organising and managing business records
  • Preparation of self-assessment yearly of the tax return while calculating tax refundable if needed

Every contractor that a subcontractor works for is responsible of determining whether the subcontractor was self-employed or employed to conduct each and every contract which they undertake. If they are an employee, the contractor then provides a PAYE-like scheme which is a case where National Insurance Contributions and tax gets deducted from payments made to the subcontractor. For self-employed, HRMC registers the subcontractor under CIS scheme then it will be set that payments are received under deduction. This therefore means that contractors will be required to deduct 20% for labour offered then forward it to HRMC.