Under the construction industry scheme contractors deduct money from a subcontractors payments and pass it to HMRC.
The deductions count as advance payment towards the subcontractors tax and national insurance.
Contractors must register for the scheme. Subcontractors do not have to register, however deductions will be taken from their pay at a higher rate if they are not registered.
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 – for example, 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
Our team are well versed in the Construction Industry Scheme, so if you need any assistance, please give us a call.