Construction Industry Scheme

If you are a Contractor and use Subcontractors for your work you are required by HMRC to deduct money from subcontractors payments and pass it on to HMRC

The deductions count as advance payments towards a subcontractors tax and national insurance contributions.

More information on CIS and what it entails can be found by visiting the HMRC website https://www.gov.uk/what-is-the-construction-industry-scheme

When you pay your subcontractors it will be a similar process to paying an employee, in that HMRC needs to know each month how much has been paid and to whom.

Thats where we can help take the strain out of the admin and ensure you comply with HMRC requirements.

There are two ways we can manage the process for you, depending on how your subcontractors work.

Option one is where subcontractors turn up to work at a site and record their hours in a site log.  Although it is best if they give you an invoice for their work, this does not work for all. We can take the information from the site log and produce a subcontractor payslip which confirms the number of hours and amount paid/deducted. the payslip can be emailed to the subcontractor for them to keep for their tax records.

 

 

 

Option 2 is where you may have one or a few invoices from a subcontractor during the month, which are either deducted and paid manually as they are received.  Each month we will review the invoices and payments made and produce a Subcontractor payment certificate confirming all payments and deductions made within that month.  The certificate can be emailed to the subcontractor for them to keep for their tax records.

 

In both instances, we will carry out the reports and filings that are required by HMRC and provide you with the total amount you as the Contractor need to pay to HMRC each month.

 

For more information or to discuss your requirements, please fill our contact form