CIS (Construction Industry Scheme) Accounting

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Contractors Accounting (CIS)


We provide following services for contractors and subcontractors:

  • Register you with HMRC as a contractor and/or subcontactor
  • Verify your subcontractor(s) details with HMRC
  • Ensure you pay your subcontractors correctly within the scheme
  • Supply deduction statements to the subcontractors
  • Keep your records in good order and supply HMRC with monthly returns
  • We provide an Immediate Construction Industry Scheme (CIS) tax return service for contractors & subcontractors who are registered on the Construction industry scheme. We will complete your CIS tax return, informing you of how much tax you owe HMRC or how much money HMRC may owe you, ensuring that you pay the correct amount of tax in timely manner to ensure that you do not incur penalties by failing to submit your monthly returns to HMRC.

Contractors:

As a contractor, you are required to meet specific obligations under the scheme, including:

  • Registering with HM Revenue and Customs (HMRC)
  • Checking whether your subcontractors are registered with HMRC
  • Paying subcontractors, deducting tax and submitting monthly statements confirming these payments

AG Accounting Solutions work with numerous contractors and subcontractors. We always ensure that we are up-to-date with any changes in the CIS regulations so that we can notify our clients in timely manner of any changes that may affect them.

Subcontractors:

If you are a subcontractor, your main obligation is to register with HMRC. You must also keep HMRC informed of any changes to your business such as changes to your business address, business name, business partners and other relevant information.

Services we provide for subcontractors:

  • Determine your status as a subcontractor or employee or both and register you with HMRC accordingly.
  • Verify you with HMRC on behalf of your contractor.
  • Manage and organise your business records.
  • Prepare your year-end self-assessment tax return and calculate your tax liability/ refund where applicable.

Any contractor that you work for must determine whether or not you are employed or Self-employed for each and every contract. If you are an employee, the contractor will need to operate a PAYE scheme.

If you are self-employed, HMRC will register you as a subcontractor under the CIS scheme and they will set you up to receive payments ‘under deduction’. This means contractors must make a deduction of tax at 20 per cent (30 per cent for unverified subcontractors) from the labour element of your invoices and pay it over to HMRC.

Whether you are the contractor or the sub-contractor, AG Accounting Solutions can help you keep your CIS affairs in order.

We educate you to understand which expenses can be claimed as a contractor working through a limited company.

Note! You must keep your evidence for the expenses if in case HM Revenue and Customs ever ask you; this is usually achieved by keeping receipts.