PMA Business Services has been involved within the Construction Industry Scheme for many years and is very familiar with all aspects of the scheme.
Contractor registration and obligations
The Construction Industry Scheme (CIS) is a set of rules for contractors and subcontractors in the construction industry. If you’re a CIS contractor (including a deemed contractor), you’ll need to register with HM Revenue & Customs (HMRC). You’ll also have to follow certain rules to make sure you pay your subcontractors within the scheme correctly.
The things you’ll need to do include:
[bulletlist]verifying your subcontractors with HMRC paying your subcontractors in the right way – making deductions if necessary paying over deductions to HMRC
giving subcontractors deduction statements
sending monthly returns to HMRC
keeping proper records
Our services for the Construction Industry Scheme (CIS) are tailored to be fully compliant with Inland Revenue regulations.
- verification of subcontractors
- calculation of subcontractor deductions
- maintenance of records showing amounts deducted for each individual subcontractor
- production of subcontractors monthly statements
- completion and submittal of contractors monthly return
- advising on the total amounts payable to HMRC for the appropriate month
- Telephone advice when needed
- Liaison with HMRC regarding any dispute or CIS queries
How much tax do I deduct from my subcontractor?
When you first employ a new subcontractor you will need to request the following information from them.
- Name and business name
- Unique tax reference
- National Insurance Number
This information is required to verify the amount of tax to be deducted. Call 0845 366 7899 with this information and you will be told the percentage to deduct from their labour charges. If this information is not available and you are unable to verify the subcontractor you are required to deduct 30% until they are verified.
Am I a Contractor or am I a Subcontractor?
You are a Contractor if:
- 1. you run a business that engages subcontractors for construction operations.
- 2. you run a business that spends an average of £1 million or more per year over a three year period on construction operations.
You’re a subcontractor if: you agree to do construction work for a contractor. It doesn’t matter how you actually carry out the work you could do it yourself, get your employees to do it, use your own subcontractors or make some other arrangements.