The Construction Industry Scheme (CIS) can be confusing for both contractors and subcontractors. From verifying subcontractors and submitting monthly returns to claiming CIS tax suffered and staying compliant with HMRC requirements, there are numerous obligations that must be managed correctly.
The Construction Industry Scheme (CIS) is a HMRC scheme that requires contractors to deduct tax from payments made to subcontractors working in the construction industry.
Contractors must:
Subcontractors can then claim credit for CIS deductions against their tax liabilities.
Contractors must:
Failure to comply can result in HMRC penalties.
Subcontractors must:
Many subcontractors are due tax refunds because excessive CIS tax has been deducted during the year.
Businesses often make mistakes such as:
Professional CIS support helps reduce these risks.