The Construction Industry Scheme, otherwise known as CIS - is a scheme whereby contractors deduct money from a subcontractor’s payment, before paying the sum to HMRC as a form of tax. These deductions count towards the subcontractor’s income tax and National Insurance Contributions (NICs).
It is a legal requirement for contractors to register for the Scheme and run CIS monthly returns if they are paying subcontractors. These subcontractors also need to be ‘verified’ with HMRC to work out how much tax needs to be deducted from them.
Subcontractors need to register with HMRC so that their tax is deducted at a lower rate.
Meanwhile, contractors need to issue the monthly payment and deductions statements to each subcontractor they are paying, so that the subcontractor can prove to HMRC the tax that has been deducted from them.
As with the Employer payroll, Construction Industry payroll is a lot of hassle since Real Time Information (RTI) was introduced. Penalties for late filing are expensive for a business.
We can take away all the bother of running the payrolls on time and ensure the correct tax is deducted from subcontractors.
We can also ensure any CIS tax deducted from you, if you are also a subcontractor, is correctly entered into the payroll each month.
"we can take away the stress and let you get on with what you do best".
