Contractors and subcontractors working in the construction sector must operate within the Construction Industry Scheme (CIS).
This can also apply to businesses that do not work in the construction sector but are “deemed” contractors due to incurring £3m on relevant construction expenditure in a rolling 12 month period.
At Old Mill we can assist both contractors and subcontractors in complying with the CIS legalisation by advising when and how to register with HMRC, and whether gross registration is available for a subcontractor business.
For contractors, we can prepare and submit monthly CIS returns from your records, calculate the deducted tax to pay to HMRC each month, and let you know how to pay this. We’ll also produce subcontractor statements which need to be provided to all your subcontractors each month.
This can also involve advising you whether a contract falls under the CIS scheme, verifying your subcontractors to determine the rate of tax to deduct, advising which costs should have CIS tax deducted, and how to enter this into your accounting software. We can also help you amend past CIS returns where required.
For subcontractors, we can help you reclaim or offset the CIS tax that you have had deducted. For limited companies, we can make the relevant Employer Payment Summary (EPS) submissions and correspond with HMRC. For sole traders and partnerships, we can calculate the CIS tax deducted and include the relevant pages on your annual Self Assessment tax return. If HMRC query a repayment, we’ll correspond with them to provide the information required to get the payment processed.