CIS stands for Construction Industry Scheme and is a tax deduction scheme solely for people in the construction industry.

Construction contractors are required to make CIS tax deductions from their subcontractors’ wages (20% for registered individuals vs 30% for the unregistered) and pay the money directly to HMRC.  These payments go towards the subcontractors’ National Insurance and tax deductions for the year.

Contractors are responsible for deducting the correct amount of tax from subcontractors’ wages and submitting CIS returns on a monthly basis.  Any wrongly reported subcontractor payments could result in a fine of up to £3000.

The CIS scheme was designed to cut down on tax evasion within the construction industry.  However, a lot of contractors end up paying too much tax.

We can help you deal with the admin involved with CIS, from registering you with HMRC to avoiding late payments and penalties.  We’ll ensure your accounts are compliant with HMRC guidelines and that you reclaim any tax overpayments, leaving you less to worry about.

Contact us for a free consultation.