Soke Accounting

If you are a Contractor or a subcontractor looking for CIS, we can help

For CIS Contractors:

1. Register for CIS: All contractors who pay subcontractors for construction work must register for CIS. This can be done online or by calling the CIS helpline.
2. Verify subcontractors: Before making any payments to a subcontractor, you must verify that they are registered for CIS. You can do this by checking the CIS online service or by asking the subcontractor for their CIS registration number.
3. Make deductions from payments: When you make payments to subcontractors, you must usually deduct a percentage from their payments and pay it to HMRC. This deduction is called a “CIS deduction” and it counts as an advance payment towards the subcontractor’s tax and National Insurance bill.
4. File monthly returns: You must file monthly returns with HMRC that detail all payments made to subcontractors and the CIS deductions made from those payments.
5. Keep records: You must keep records of all CIS deductions you have made and all payments you have made to subcontractors. These records must be kept for at least five years.

For CIS Subcontractors:

1. Register for CIS: If you are a subcontractor who carries out construction work for a contractor, you must register for CIS. This can be done online or by calling the CIS helpline.
2. Provide your CIS registration number to contractors: When you are hired by a contractor, you must provide them with your CIS registration number. This will allow them to verify your registration and make the correct CIS deductions from your payments.
3. Keep records: You must keep records of all payments you have received from contractors and the CIS deductions made from those payments. These records must be kept for at least five years.
4. Apply for gross payment status (GPS): If you have a good track record of tax compliance, you may be able to apply for gross payment status (GPS). This means that contractors will not be required to make CIS deductions from your payments.
5. Seek professional advice: If you have any questions about CIS, you should seek professional advice from an accountant or tax advisor.

Additional tips:

• Be aware of the Construction Industry Scheme (CIS) rules: The CIS rules are complex and can change frequently. It is important to be aware of the latest rules to ensure that you are compliant.
• Use the CIS online service: The CIS online service is a valuable tool for CIS contractors and subcontractors. It allows you to register for CIS, verify subcontractors, file monthly returns, and keep records.
• Get help from HMRC: HMRC has a dedicated team of staff who can help CIS contractors and subcontractors with their CIS obligations. You can call the CIS helpline or visit the HMRC website for more information.

By following these tips, CIS contractors and subcontractors can ensure that they are compliant with the CIS rules and avoid penalties.

For more information contact us at Soke Accounting