If you are a contractor or sub-contractor in the construction industry in the UK, CIS is for you. You can get all the help from Total Tax Accountants in this regard.
The CIS Tax System defines the rules for processing payments to subcontractors for construction works by contractors and certain other companies. Under the plan, all payments from contractors to subcontractors must take into account the subcontractor’s tax status as determined by HMRC. This may require the contractor to make a deduction for that portion of the payment that does not match the subcontractor’s material costs, which it then pays to HMRC.
The plan covers all construction in the UK including works such as: Site preparation, Renovation, Dismantling, Building, Repair, Décor, Demolition. The scheme does not apply to construction work outside the UK. A company outside the UK doing construction in the UK is part of the program and must register to do so.
When you are about to hire and pay your first subcontractor, no matter if that subcontractor is likely to earn gross income or deduct, you need to get yourself registered for CIS Tax. To register as an entrepreneur, you must go through the process of creating a new employer registration. HMRC will set up an entrepreneurship program (and a PAYE system if required) and will direct you where to find the information you need.
Sub-Contractors need to sign up when you or your company or business is about to start working in the construction industry.
If you are a single distributor and already have a UTR, you can register with CIS online. In order to register, you need a Government Gateway user ID and also password. If you don’t have a user ID, you can create one when you sign up. You can request the gross payment status at the same time. If you do not have a UTR, please register as a new company for the self-assessment and select “Outsource” when prompted. You will be registered for the self-assessment and the CIS at the same time.
Registration in the CIS takes place in addition to the self-assessment as a self-assessment and not at the place of registration as a self-employed. This means that there are two separate recordings, but both can be taken at the same time.
Total Tax Accountants have expertise in CIS tax returns. Our expert CIS Accountants based in High Wycombe office to help you with CIS Accountancy and Tax Returns. Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments, which is then passed onto HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
We organize and maintain all this record according to HMRC requirements. If you are not already registered for CIS, we help you in the registration process and finally when you have to submit the CIS tax returns, we smoothen this process for you.
We at Total Tax Accountants has invested great deal in our sophisticated accounting software and process all your CIS Tax Returns through authorized and approved HMRC digital accounting software providers. With such sophisticated and advanced accounting systems in place we can confidently tell you that all your CIS Taxes are in safe hands with us.