Does the Construction Industry Scheme apply to you?

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

 

The deductions count as advance payments towards the subcontractor’s tax and National Insurance.

 

Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered.

 

Again its important to ensure accurate records are kept of deductions that are made   whether you are a subcontractor or a contractor.

 

 

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

 

 

Please go to the Government’s web site for further information:

 

https://www.gov.uk/what-is-the-construction-industry-scheme

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