For contractors and subcontractors who work in the construction
Services we can provide for contractors:
- CIS registration with HMRC
- Verification of your subcontractors with HMRC
- Assist you with how to pay your subcontractors correctly within the scheme
- Keep your records in good order and supply HMRC with monthly CIS returns
TaxSmart works with numerous contractors and are fully equipped to assist you in this process. By keeping up to date with any changes to the CIS regulations we can make sure are clients remain compliant with the rules and regulations
Contractors: As a contractor, you have certain obligations under the CIS scheme, which includes the requirement to register with HMRC, verifying your subcontractors are CIS registered, paying subcontractors and deducting tax from them, and submitting monthly returns to HMRC.
Sub-contractors: As a sub-contractor, 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:
- Register you with HMRC
- Manage and organise your business records
- Prepare your end of year self-assessment tax return and reclaim your CIS deductions against your tax liability
Any contractor that you work for must determine whether or not you are to be treated as employed or self-employed for each and every contract. If you are an employee for the purpose of the contract, the contractor will need to operate a PAYE scheme whereby tax and National Insurance Contributions will be deducted from the payments made to you.
If you are self-employed, as a sub-contractor you need to be registered with HMRC under the CIS scheme. Once registered, contractors must make a deduction of tax at 20% (30% if you are unverified) from the labour element of your invoices and pay it over to HMRC.
Whether you are the contractor or the sub-contractor, we can help you keep your CIS affairs in order.
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TaxSmart Accounting are an independent and forward thinking accountant with the flexibility to meet the client’s needs in a professional and personal manner. Outsource as much or as little of your bookkeeping and payroll needs as required with our fully personalised service. Contact us today for further information or a free consultation on how we can help your business.