The Construction Industry Scheme (CIS) regulates the payments made from contractors to subcontractors in the building Industry. It is applicable to anyone who uses sub-contractors and who therefore must declare themselves as a contractor under HMRC rules.
What is little known is that CIS can apply to a wider group than straightforward contractors and subcontractors, such as payments from a property developer to a building contractor and a range of other circumstances.
Under the scheme it is the responsibility of the contractor to collect and pay the correct amount of tax and to maintain an accurate record of the subcontractors who have undertaken work on their behalf, accurately declaring periods worked and payments made, including materials.
Failure to accurately report or missed deadlines can result in severe fines and/or penalties which is why many contractors choose to pass this administration to professional tax advisers.
Our experienced tax team can support you in all aspects of with CIS including:
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