CIS, i.e. Construction Industry Scheme, comprises the rules of settlements between contractors and subcontractors and applies them to all companies that have any connection with the performance of construction works, renovations, installations, etc. CIS cover every construction business, regardless of its size and the number of subcontractors, ( both LTD and LLP companies, partnerships or self-employed except for businesses register for gross payment status).
What is it about?
A subcontractor is a self-employed or Limited Company person who performs work for the contractor and for which he is paid an appropriate remuneration (minus 20% tax). Considering that he is a self-employed or LTD, he must be registered with HM Revenue & Customs (similarly to a contractor) and is obliged to settle the tax on his own at the end of each tax year. Our accountancy office provides comprehensive assistance in this area and advice – both to people who are just starting their work in Great Britain as well as experienced employees.
The contractor is required to calculate the amount of the CIS tax and pay the subcontractor the difference. Subcontractors are not subject to Employment law , including the regulations of paid holidays or sick leave and the basis for them to start work in the CIS system is to register for CIS with HMRC. Without registration, the CIS tax will be not 20%, but 30%. Contractors, before hiring a subcontractor, find out whether a person can be hired as a subcontractor – the verification process is short and the lack of registration in the system will be quickly noticed.
Send your CIS form
If you are interested in working in the United Kingdom on the basis of this system of settlements with your employer, we invite you to our accounting office in London, where we will help you complete all forms and pass them to the right place. As the UK tax specialists, we will provide clients with the necessary knowledge so that they can settle accounts correctly in England, Scotland, Wales. We approach each project individually, providing comprehensive assistance and dispelling all doubts related to CIS settlements.
If you have any questions, we encourage you to contact us or visit us in one of the branches of our accounting office in London. We guarantee competitive prices.