Corporate and business taxes

Construction Industry Scheme

Essentially, the CIS is how HMRC collects Income Tax from people who work in and around the building industry as subcontractors rather than employees. 

Contractor’s obligations under the CIS are to:

  • Confirm any individual subcontractors engaged are truly self-employed and not employees
  • Verify this with HMRC and obtain a payment status and then pay the subcontractor as appropriate
  • If deductions are due, you should check material costs to ensure they are not inflated
  • Complete monthly CIS returns (penalties arise if returns are late or incorrect) and subcontractors CIS Tax statements

We will help you to prepare your monthly CIS returns and submit them on your behalf. Leaving you free to get on with the work and give you peace of mind that any subcontractor you use, that their labour is invoiced, and a certain amount is kept back as tax under the CIS and is paid to HMRC. 

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Our Corporate and business taxes Expert Simon Murrison

Simon, co-director and Chartered Accountant has worked with SMEs and owner managed businesses for 25+ years.

Simon advises on all aspects of accountancy, tax and year-end reporting to Companies House and HMRC, cloud bookkeeping systems and good financial management.