CIS – Construction Industry Scheme
We have been helping businesses/contractors and subcontractors deal with the administrative task of CIS for many years.
It can feel very daunting and take time to complete the task accurately, but we have the knowledge to take that stress away and ensure you
need not worry and all the deadlines will be met.
As a contractor you must:
- Register for CIS with HMRC
- Check your subcontractors are registered with HMRC by verifying them online
- pay subcontractors accordingly
- submit monthly CIS returns
- Pay CIS to HMRC
As a Subcontractor you must register with HMRC, if you are not registered, contractors have to deduct the higher 30% rate, instead of the registered 20% rate off your invoice
Running a Limited Company under CIS
You can offset your CIS deductions taken from payments received against the following:
- Any PAYE payments due to HMRC
- Your Class 1 National insurance contributions
- CIS deductions the company has made from its own subcontractors
HMRC will repay any deductions that the company is not able to offset against its PAYE liabilities
Under RTI this is now done monthly using the EPS through payroll.
Offsetting your Monthly or Quarterly CIS liabilities
Each month or quarter you should offset your CIS liabilities against your PAYE/NICs payments. This will either reduce your CIS payments or eliminate it fully.
If your liability is reduced to nil and there are still some unused CIS deductions that have not been offset, you should carry these forward to the next month or quarter within the same tax year and don’t forget to tell HMRC that you have no liability to pay over for that period.
If the company’s CIS deductions available for offset in any month or quarter do not cover the whole of the company’s liability for that period you must pay over the balance to HMRC by the usual payment date.
CIS Record Keeping
As part of our CIS service for Contractors we will:
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