CIS-construction-industry-scheme

CIS

Specialising in CIS tax rebates Moore Financial Management can help you.

If you are a CIS subcontractor it is likely you have had tax deducted at source by the contractor/s you have worked for. If so, you could be due a rebate.

As your HMRC registered agent for CIS I can:

  • Bring your bookkeeping up to date
  • Prepare your year end accounts
  • Calculate your taxable profits and tax liability
  • Ensure you utilise the tax allowances you are entitled to
  • Submit your Self Assessment Tax Return to HMRC
  • Arrange for the refund of tax to be payable direct to your bank account

This will help you by ensuring you:

  • save time to concentrate on your business
  • comply with HMRC requirements
  • maximise your tax allowances
  • minimise your tax liability
  • receive the full amount due back to you as soon as possible

Last Year I reclaimed an average of £2,500 for clients in respect of CIS tax.

Get in touch to find out how much tax you can save or reclaim

What is CIS?

Under the Construction Industry Scheme (CIS), contractors deduct money from subcontractor’s payments and pass it on to HM Revenue and Customs (HMRC).

The deductions count as advance payments towards your subcontractor tax and National Insurance.

If you are a Contractor you must register for the scheme.

If you are a Subcontractor you don’t have to register, but deductions will be taken from your payments at a higher rate if you are not registered.

Who counts as a contractor or subcontractor?

You need to Register as a contractor if either:

  • you pay subcontractors for construction work, or;
  • your business doesn’t do construction work but you spend an average of more than £1 million a year on construction in any 3-year period

And you need to Register as a subcontractor if you do construction work for a contractor.

  • You must register as both if you fall under both categories.

Work covered by CIS

CIS covers most construction work to:

  • a permanent or temporary building or structure
  • civil engineering work like roads and bridges

For the purpose of CIS, construction work includes:

  • preparing the site, eg laying foundations and providing access works
  • demolition and dismantling
  • building work
  • alterations, repairs and decorating
  • installing systems for heating, lighting, power, water and ventilation
  • cleaning the inside of buildings after construction work

Exceptions

You don’t have to register if you only do certain jobs, including:

  • architecture and surveying
  • scaffolding hire (with no labour)
  • carpet fitting
  • making materials used in construction including plant and machinery
  • delivering materials
  • work on construction sites that’s clearly not construction, eg running a canteen or site facilities

The CIS guide for contractors and subcontractors has more detail on what is and isn’t covered by the scheme.