Construction Industry Scheme
In a response to tackle the collection of tax from many in the construction industry HMRC introduced the construction Industry Scheme in 2006. From this point, any subcontractor working on a commercial construction site/development has to register for the scheme with HMRC. If a subcontractor is not registered, the contractor is obliged to deduct 30% tax when making payment to them. A registered subcontractor has tax deducted at 20%.
As a contractor, it is your responsibility to ensure you are registered for CIS before you take on your first subcontractor. You are also responsible for ensuring the subcontractor has been verified by HMRC and the correct deductions are made before paying them. Monthly returns will need to be filed and full records must be kept. While the Construction Industry Scheme exists to make life simpler for subcontractors, ensuring their taxes are paid to HMRC monthly, it requires you as the contractor to ensure all records are kept up to date and accurately submitted.
Here at Gibson Accountancy, we have experience spanning many years of working with CIS schemes. We will submit all the required paperwork, keep payment records, ensure payments are correctly and regularly made to HMRC and can keep you up to date with impending changes or notable upcoming deadlines, leaving you free to focus on what you do best. Nobody likes being bogged down by paperwork or wasting valuable site hours trying to understand HMRCs stipulations when they could be completing the job, so many companies trust us to complete their Construction Industry Scheme paperwork and filing so they can get on with just that; completing the job.
Contact us via the below form to find out how our experts can assist you with the setup and implementation of your Construction Industry Scheme setup.
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