CIS is a scheme in the UK, issued by HM Revenue and Customs (HMRC), for mainstream contractors and deemed contractors in the construction industry. The difference between the two is that the principal activity of mainstream contractors is construction.
Construction is not the core business operation for deemed contractors, but they tend to have high annual spending in this field.
Under CIS, HMRC specifies guidelines for contractors before they make payments to subcontractors. HMRC mentions that the contractor must be registered under CIS before they take on their first subcontractor. The registered contractor will have to make deductions from their subcontractor’s payments and pay that money to HMRC.
The scheme applies specifically to the UK. However, businesses based out of UK are required to comply with CIS rules if they have ongoing construction projects in the UK.
Which jobs fall under CIS?
CIS covers the following jobs:
- Site preparation
- Alterations
- Dismantling
- Construction
- Repairs
- Decorating
- Demolition
The scheme supports all companies, partnerships, and self-employed individuals who are involved in the construction industry. Businesses can be considered contractors, subcontractors, or both.
The terms contractor and subcontractor have special meanings under this scheme.
ISA Accountants will help you register with CIS and advice you with the rest of the process.
Do you offer free consultations?
When you contact us for accountancy advice, we will supply you with a free, no-obligation quote based on your business needs and bespoke requirements. We aim to answer all enquiries within 24 hours, so please get in touch with Approved Accounting today if you would like to know more.
Who do you help?
We provide services to personal taxpayers, self-employed individuals, partnerships, company directors and property landlords. Our services are tailored to you and your needs. You will find more information about who we help here.
I am looking for a price, what are your fees?
In order to provide you with a quotation, we can arrange a free, no obligation, consultation with you to discuss your individual needs so that you only pay for the level of support that you require. This allows us to best understand your needs and provide a tailored quotation for you. From this meeting we will provide you with a fixed fee quote that we both agree to and you will then know exactly what you are paying for the services we provide. Our clients tend to prefer to pay monthly which is an option we can discuss in the meeting.
Do you offer work experience placements?
Yes, if you are looking to gain experience in bookkeeping, tax or accountancy, some of our local offices offer work experience placements from time to time. The arrangements vary across our locations. To be put in touch with your nearest office to find out more, please contact us online.